A Quiet Corner of Crypto: Why XRP Looks Undervalued Right Now

Why I think XRP is underpriced — and what the $2 level means

Ripple (XRP) has spent the past few weeks tracing a clear floor near $2. That support matters: it tells us buyers keep stepping in at a level that previously looked like a sell zone. My thesis is simple and mildly bullish — XRP looks cheap relative to what it could capture if two things happen: more real-world payment use, and measurable tightening of supply or greater on-chain demand. I’ll lay out both reasons and then explain the main risks that could easily overturn this view.

How XRP has been trading lately and what traders should watch

Price action has been dominated by a stable, visible support around $2. Volume has not exploded; instead, volatility has calmed compared with prior churn, suggesting market participants are repositioning rather than panicking. XRP still moves with the rest of crypto, so when Bitcoin (BTC) lurches either way, XRP typically follows — but there are moments when XRP decouples, especially after news about payments integrations or legal developments.

For traders, the short-term map is simple: the $2 area is the baseline that matters. A clean break below it on heavy volume would signal fresh downside, while a sustained move above the recent trading band would give bulls room to test higher resistance. In plain terms: think of $2 as the on-deck circle. If XRP holds it and pushes up through near-term resistance, momentum can arrive quickly because the token’s average daily liquidity is often insufficient to absorb big, directional flows without moving the price.

A genuinely large market is waiting — payments and remittances are not small change

The first reason to be constructive is fundamental: the market Ripple targets is huge. Cross-border payments, remittances and corporate liquidity corridors are measured in many hundreds of billions, even approaching a trillion dollars of annual flow in some estimates. That’s orders of magnitude larger than the spending market some other digital assets chase.

Why does that matter? If a small fraction of those flows — even a few percent — moves through a rail that settles in XRP, demand for the token could grow meaningfully over time. Bulls argue this is similar to how Bitcoin captured the narrative and capital flows around scarce digital money. The pathway for XRP is different: it’s about utility in moving value fast and cheaply between currencies, not about being a store of value. That practical utility makes adoption realistic: fintechs, remittance providers and even corporate treasuries can plug into an on-demand liquidity network and avoid pre-funding foreign accounts.

That isn’t free money. For adoption to stick, Ripple’s tools have to be cheaper and easier than the alternatives. But the potential addressable market is large enough that even gradual adoption could lift valuation materially from current levels.

On-chain signs and partnerships that could tighten supply or lift demand

The second reason is structural: on-chain activity and real-world tie-ups can change the supply-demand balance. There are a few specific dynamics to watch. First, when exchange wallets show falling XRP balances, that signals selling pressure may be easing. Second, rising active addresses and payment flows on the ledger suggest real use rather than speculative trading. Third, enterprise wins — banks, payment firms or corridors publicly testing or rolling out on-demand settlement that uses XRP — would create predictable demand.

Another key factor is how locked or released supply is handled. Ripple historically held large allocations and used escrow mechanisms; changes to how and when XRP is released into the market, or a shift toward on-chain utility rather than sales, could tighten effective supply. Legal clarity matters here too — progress in litigation or favorable rulings that reduce selling uncertainty would lower the risk premium investors assign to XRP and could unlock latent demand.

Where the thesis can fail — clear, tangible risks

Don’t mistake my constructive case for certainty. There are real and sizable risks that would invalidate the bullish view. First, regulatory risk is the most obvious. If major jurisdictions impose restrictions, or if litigation produces outcomes that increase the token’s classification risk, demand could collapse and liquidity could dry up.

Second, competition is intense. Stablecoins, central bank digital currencies and faster fiat rails all attack the same problem set. If these alternatives win widespread trust and integration before XRP achieves durable utility, the token’s upside shrinks.

Third, concentration of holdings matters. When a small number of wallets control a large share of supply, a single large sale can trigger disproportionate moves. Finally, macro liquidity and correlation to Bitcoin remain strong. In broad risk-off events, XRP has historically fallen with the market even when its own fundamentals looked fine.

How traders and investors might frame this idea

If you like the constructively bullish case, treat it as a thematic, medium-term idea rather than a quick trade. Monitor four things: exchange balances for signs of selling pressure easing; on-chain metrics like daily active addresses and payment flow volumes; concrete partnership announcements and trial rollouts; and legal milestones that reduce uncertainty. Price levels matter too — the $2 floor is the baseline; a durable break below would force a reassessment, while a clean climb above recent resistance zones would make the case stronger.

For positioning, think in terms of size and time horizon: this is an allocation for someone willing to live with swings tied to broader crypto cycles, and whose horizon is measured in months to years, not days. The upside is real if adoption and on-chain demand accelerate; the downside is painful if regulatory or macro factors worsen. That mix is why I call the setup constructively bullish but not speculative cheerleading — the market has priced in a fair amount of uncertainty, and any clear reduction in that uncertainty could be rewarded sharply.

Sources

• youtube.com
• cryptopotato.com
• cryptopotato.com
• cryptopotato.com
• cryptopotato.com