Arca CIO Jeff Dorman recently stirred controversy on the Empire podcast by labeling XRP as “insanely overvalued,” pointing to its perceived lack of concrete financial or utility value. With a market cap hovering around $122 billion, Dorman argues that XRP’s valuation is predominantly driven by social value — community loyalty and narrative rather than tangible financial metrics. He drew a striking comparison to GameStop, asserting that both assets embody a “fake it till you make it” strategy, where hype precedes real utility.
Despite the criticism, Dorman acknowledged that social capital could eventually be monetized, just as GameStop leveraged its meme momentum to diversify into crypto. Ripple’s recent acquisition of Hidden Road could be a strategic move to transform its community-driven narrative into concrete financial use cases.
Technical Analysis: Bearish Indicators Signal More Downside for XRP
XRP is currently trading at $2.09, down over 8% in the past week, reflecting growing bearish sentiment. The asset has slipped below its 20-day Exponential Moving Average (EMA) at $2.16, suggesting a loss of key support. The 4-hour chart reveals bearish momentum, with the MACD (12, 26) remaining in negative territory and no bullish crossover in sight. Additionally, the RSI (14) hovers at 33.59, close to the oversold threshold, indicating that further downside could be imminent.
Key Fibonacci retracement levels indicate potential support zones around $1.90 and $1.77. Unless buyers step in to reclaim the $2.20 resistance, XRP could face continued pressure, with the 2.618 extension at $1.90 serving as the next critical support level.
Also Read: XRP Price Prediction: Analyst Eyes $6.30 Breakout in Bold Elliott Wave Forecast
Fundamentals: Development Up, Usage Down
Despite the bearish technical outlook, XRP’s development activity has surged by 196% in the past 30 days, according to Santiment data. However, daily active addresses have plummeted to 40,000, marking a significant decline from the March peak of over 600,000. Large-value transactions ($100K+) are also in decline, highlighting reduced high-value engagement on the XRP Ledger.
As Ripple attempts to pivot from social capital to real-world utility, the market will closely monitor whether the ongoing development efforts can translate into sustainable value for XRP.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
