XRP price drops 4% as Bayberry Capital says it is undervalued

XRP price drops 4% as Bayberry Capital says it is undervalued

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The slide comes even as analysts catch up Bayberry Capital claim that the Ripple-affiliated token remains vastly undervalued.

The private investment firm said that XRP is trading well below its intrinsic value and that the market continues to misvalue XRP because it “misunderstands the purpose of the asset.”

Bayberry thinks investors are overlooking serious payments infrastructure and points to growing real-world use, from Ripple’s banking partnerships to increasing on-chain activity.

XRP Price Stuck in Golden Pocket, Is a $5.20 Breakout Possible?

Despite the pullback, XRP’s chart shows both solid support and persistent resistance. Over a three-day period, the coin remains above a key support zone between around $1.90 and $2.20 that has absorbed the latest sell-off.

This region coincides with the 50% Fibonacci retracement ($1.94) of XRP’s 2024-2025 bull run. Staying above this zone could avoid a deeper decline towards the next Fib support around $1.60 (golden pocket) or even $1.12.

However, the XRP price also faces resistance from above. The 50-day simple moving average near $2.75 has repeatedly limited recent bounce attempts. A decisive break above that level would be needed to signal a trend reversal.

On the other hand, the 200-day SMA of around $1.71 is well below value as a solid backstop if things turn south. For now, the price continues to consolidate just above the golden pocket region, indicating that neither bulls nor bears have a clear upper hand. The card’s spiral pattern could precede a sharp move in either direction.

However, if sentiment turns bullish again, there is a looming significant upside target around $5.20, according to the technical analysis. But the Ripple token must first regain the $3 range, with $3.40 as a major hurdle. Removing that resistance would open the door to new record highs.

If conditions become favorable, a renewed rally could see XRP rise to the $5+ range. Macro factors and regulations will likely play a big role in whether XRP can make a comeback until 2026.

A rise above $2.75 would likely confirm the start of a new uptrend, which could push prices towards $4-$5 in late 2025 or early 2026.

Conversely, a breakdown below $1.90 could lead to a deeper correction towards $1.60, where stronger long-term buyers could intervene. Overall, XRP’s technical setup remains cautiously bullish, with clear support and resistance zones determining the next decisive move.

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