XRP Price Prediction: 22% Rally, But Ripple Still is Undervalued

What Drives the Current Undervaluation Argument?

XRP surged 22% to $1.30 on Thursday, driven by broader market optimism and easing macroeconomic pressures. The token’s rise follows a period of consolidation after recent regulatory developments involving Ripple Labs. Analysts note the move reflects renewed investor interest in utility-focused altcoins amid shifting sentiment in the crypto space.

The price increase broke through a key resistance level at $1.15, which had held firm for over two weeks. Support now appears strong around $1.20, with trading volume rising steadily during the ascent. Market observers point to improved liquidity on major exchanges and reduced selling pressure from institutional holders as contributing factors. Despite the gain, some analysts argue XRP remains below its intrinsic value when compared to network activity and partnership growth.

How Sustainable Is the Recent Momentum?

Proponents of the undervaluation thesis highlight Ripple’s expanding use of XRP in cross-border payment corridors, particularly in Southeast Asia and Latin America. Transaction volume on the XRP Ledger has grown consistently over the past quarter, yet the token’s price has not fully reflected this utility. Critics, however, cite ongoing legal uncertainty in the U. S. as a persistent overhang that suppresses valuation multiples relative to peers.

While the 22% rally is notable, sustainability depends on whether macro conditions remain favorable and if Ripple can secure additional regulatory clarity. A break above $1.40 could trigger further upside, targeting the $1.50–$1.60 range where previous sell-offs began. Conversely, a drop below $1.10 might signal a return to consolidation, especially if broader risk appetite wanes. Traders are watching for cues from Bitcoin’s performance and any updates on the SEC’s stance toward digital assets.

What caused XRP’s 22% price increase? The rise was fueled by improving macroeconomic conditions, increased trading volume, and renewed investor interest in altcoins with real-world use cases, particularly as Ripple expands its payment network partnerships.

Frequently Asked Questions

Is XRP truly undervalued despite the recent gain? Some analysts believe so, citing strong growth in on-chain activity and institutional adoption that has not yet been fully priced in, though regulatory risks continue to limit broader market enthusiasm.

What are the key levels to watch for XRP moving forward? Immediate resistance lies at $1.40, with support near $1.20. A sustained move above $1.40 could open the path to $1.50, while a fall below $1.10 may test lower consolidation zones.