Key Insights:
- XRP experienced a sharp 17% drop in early April, falling from $2.14 to $1.70 within three days.
- The decline sparked renewed criticism from trader Crashious Clay, who revealed $7.5 Million in short positions on XRP.
- Clay argued that XRP lacked utility and compared it to meme coins due to minimal network activity and low on-chain revenue.
XRP continues to face significant criticism from market participants as bearish sentiment grows across the digital asset space.
A prominent trader has described XRP as lacking utility while revealing large short positions against it.
Meanwhile, the token remains volatile, reflecting broader market trends shaped by economic pressures and weak liquidity.
XRP Faces Harsh Criticism Amid Price Drop
XRP saw a sharp price decline in early April, dropping from $2.14 to $1.70 within three days.
The token experienced a 17% decline that caused widespread negative feelings among investors while generating additional concerns about its stability.
The analysts identified both market instability and unfavorable macroeconomic conditions of the ongoing trade war as the main reasons for this devaluation.
A well-known market trader, Crashious Clay, disclosed over $7.5 Million in XRP short positions in March.
The report revealed over $1 Million in earnings from his positions, yet he explained the earnings as falling customer demand, together with persistent market pressure to sell.
Clay suggested that XRP has characteristics similar to meme coins and lacks sufficient on-chain activity.
He noted that speculation about price and historical factors plays a bigger role than real-world implementation in sustaining XRP’s value.
According to him, XRP holders from earlier years are selling aggressively amid weak buying interest from new entrants.
He also claimed that those with high capital avoid XRP due to perceived risk and uncertainty.
XRP Compared to Meme Coins by Prominent Bear
Crashious Clay characterized XRP as the “biggest meme coin in disguise” due to its minimal network activity and lack of utility.
The speaker pointed to minimal revenue activity within the blockchain alongside slow adoption rates as elements indicating market uncertainty for XRP.
Per his analysis, XRP does not reflect real value and only survives on legacy momentum.
The token encounters constant selling pressures from Ripple employees, both inside and outside members of the Ripple organization and existing long-term holders who withdraw from their positions.
The ongoing offloading by sellers, along with limited purchase activities, pushes the asset price toward continued decline.
According to Clay, even major market participants known as whales are refusing to enter the XRP market.
Clay’s position remains that XRP’s $100 Billion valuation is far above its actual worth and mirrors previously inflated tokens like SHIB.
He analyzed their performance by noting that Shiba Inu achieved a $40 Billion market value that dropped to $4 Billion. In his view, XRP may follow a similar path if conditions persist.
XRP Shows Strength Despite Market Decline
Despite negative projections, XRP has performed better than many other major digital assets in recent months.
Year-to-date figures show that XRP declined by just 0.58%, Bitcoin dropped 10.6%, and Ethereum fell over 52%.
The percentage loss for Solana reached 33.66% during this time frame.
This performance contradicts the idea that XRP is significantly weaker than its peers, suggesting some resilience in its market behavior.
Market analysts noted that the current price drop is derived from general market fluctuations rather than a specific event.
According to some experts, the price data shows little volatility, in addition to critics’ fundamental analysis assessments.
Some former critics of XRP have also softened their stance in response to its improved price performance.
In November 2024, Raoul Pal admitted that his earlier recommendation to avoid XRP was premature.
Similarly, Mike Novogratz acknowledged XRP’s continued presence, crediting its active and committed community for supporting its position.
XRP Seen as Undervalued by Experts
Not all analysts agree with the bearish outlook, with several projecting long-term growth for XRP.
Bobby A, following the $0.30 pattern in older years, believes the ongoing $2 price action resembles a missed chance.
He pointed to historical patterns where XRP saw major rallies after prolonged consolidation.
In December 2024, another analyst, Zach Rector, claimed that XRP was still undervalued despite its gains.
According to him, the market value of XRP would reach $48 by determining its future potential growth rates.
Rector noted that strong fundamentals and community support would create long-lasting upward price growth.
Clay’s claims are contradicted by various experts who produce more optimistic XRP market predictions.
While short-term volatility continues, opinions remain split on XRP’s future direction.
