XRP Valuation Questioned as Network Activity Declines Significantly
Jeff Dorman's Analysis of XRP
- Dorman describes XRP as “insanely overvalued” with limited financial or utility value.
- XRP's market cap is approximately $122 billion, driven primarily by social value and community loyalty.
- He compares XRP to GameStop, suggesting both rely on hype before real utility develops.
- Dorman notes the potential for Ripple to monetize its social capital through strategic moves like acquiring Hidden Road.
Technical Analysis: Bearish Trends
- XRP is currently priced at $2.09, down over 8% in the past week.
- The asset has lost the 20-day Exponential Moving Average (EMA) at $2.16.
- Bearish momentum is evident; MACD has dipped below the signal line, indicating continued selling pressure.
- The price has broken below Fibonacci retracement levels, approaching $2.03 and potentially falling to $1.90 or $1.77 if downward trends persist.
- Critical support may lie between $1.90 and $1.70.
Fundamentals: Mixed Signals
- Daily active addresses on the XRP Ledger have fallen to about 40,000, down from over 600,000 in March.
- Declines in large-value transactions indicate reduced high-value engagement.
- Development activity has increased by 196% over the last 30 days, suggesting ongoing investment in ecosystem growth.
XRP Daily Chart | Source: TradingView