Why XRP Is the Most Undervalued Top 10 Cryptocurrency in 2025

In the crowded and volatile world of cryptocurrencies, XRP has long occupied a peculiar position: a top 10 asset by market capitalization, yet one that consistently trades below its perceived intrinsic value. By 2025, this dissonance has only deepened, with XRP's price languishing in a narrow range despite robust institutional demand, surging on-chain activity, and structural improvements to its ecosystem. This article argues that XRP is the most undervalued asset in its class, supported by a confluence of bearish market sentiment, technical indicators pointing to oversold conditions, and on-chain metrics signaling accumulation by long-term holders.

Market Sentiment: Fear and Institutional Optimism Collide

XRP's 2025 price action has been shaped by a paradoxical mix of extreme fear and cautious optimism. Social sentiment metrics, such as those tracked by Coindesk, have repeatedly flagged "extreme fear" levels-a condition historically associated with short-term rebounds according to Coindesk data. Yet technical indicators, including the TD Sequential and Supertrend, continue to signal structural weakness, with the price failing to break out of a descending channel on 60-minute charts.

Institutional demand, however, tells a different story. U.S. spot XRP ETFs have attracted $906 million in net inflows, reflecting growing confidence in Ripple's institutional-grade infrastructure. This demand has not translated into significant price momentum, creating a disconnect between fundamentals and market perception. AI models further highlight this divergence: while ChatGPT projects a conservative $2.02 price by early December, other models, including Google's Gemini, anticipate a rise to $2.80 or $3.20 if liquidity improves and macroeconomic conditions stabilize. Analysts like Changelly also predict a gradual bearish-to-bullish shift, with XRP targeting $2.28 by early 2026.

The most compelling bullish case, however, hinges on Bitcoin's long-term trajectory. If Michael Saylor's $49 million 2045 Bitcoin forecast materializes, XRP could theoretically follow a proportional path to a four-figure price. This scenario, while speculative, underscores the asymmetry in XRP's valuation: its current price appears disconnected from its potential in a crypto-dominated future.

Technical Analysis: A Market in Transition

XRP's technical profile in late 2025 reveals a market at a critical inflection point. On daily charts, the asset remains trapped in a descending channel, with resistance near $2.05 and support near $2.00. The 20-month EMA at $1.93 has become a pivotal level, with traders closely watching its ability to hold and trigger a bullish continuation.

On-chain data adds nuance to this picture. Over 1.32 billion XRP tokens were removed from exchanges in a single month, reducing reserves from $7.03 billion to $5.70 billion-a clear sign of accumulation by long-term holders. This trend aligns with historical patterns where reduced exchange liquidity precedes sharp price movements. Meanwhile, the top 1% of wallets have cut selling activity by 78%, with weekly releases dropping from 282 million to 63 million XRP according to Bitget analysis. Such behavior suggests a shift from distribution to accumulation, a hallmark of undervaluation in asset markets.

Structurally, XRP's cross-chain utility has expanded with the launch of wrapped XRP (wXRP) by Hex Trust, enabling its use on Ethereum, Solana, and other major blockchains according to Coindesk. This development, coupled with Ripple's stablecoin RLUSD and global partnerships, has strengthened XRP's institutional appeal. Yet the price remains range-bound, with a decisive breakout above $2.06–$2.08 needed to shift the bias from consolidation to a bullish trend according to Coindesk.

On-Chain Metrics: Accumulation vs. Selling Pressure

The on-chain metrics for XRP in 2025 paint a picture of a market in transition. The Dormancy Flow indicator-a measure of how long coins remain untouched-has hit historically low levels, a signal that has preceded major rallies in past bearish cycles. This suggests that dormant holders are reactivating their positions, potentially in preparation for a price surge.

Exchange reserves have also declined sharply, tightening liquidity and increasing the likelihood of upward movement if buyer interest resurges. Analysts like Niels note that this reduction in supply mirrors historical precedents where reduced liquidity amplified price swings. However, XRP faces immediate selling pressure near the $2 support level, with failed rallies above $3 in 2025 leaving it in a sideways range between $1.98 and $2.04. A breakdown below $1.985 could expose the asset to deeper corrections, while a successful defense of $2.00 might trigger retests of higher ranges according to MEXC data.

Future Catalysts: ETFs and Ecosystem Expansion

Upcoming catalysts could tip the scales in XRP's favor. The launch of XRP-focused ETFs has historically driven increased attention and volume, according to Bitget analysis, with Ripple's institutional partnerships providing a foundation for sustained demand. Additionally, the expansion of wXRP into major blockchain ecosystems enhances XRP's utility, according to Coindesk, potentially attracting new users and developers.

Conclusion: A Case for Asymmetric Value

XRP's 2025 price action reflects a market caught between bearish sentiment and bullish fundamentals. While technical indicators and on-chain metrics signal oversold conditions and accumulation, the asset remains undervalued relative to its institutional demand and long-term potential. For investors, the key question is whether the current support levels can hold and whether macroeconomic or regulatory catalysts will unlock XRP's full value. In a market where top 10 cryptocurrencies often trade at premiums, XRP stands out as an anomaly-its price disconnected from its fundamentals, and its future trajectory dependent on the very forces that have historically driven crypto's most dramatic rallies.