XRP Price Drops 4% as Bayberry Capital Declares It Undervalued

XRP price fell 4.7% over the past 24 hours to trade at $2.32 as of 2:47 a.m. EST on trading volume that plunged 12% to $5.16 billion.

The slide comes even as analysts at Capital of the Bay of Bay argue that the Ripple-affiliated token remains massively undervalued.

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

Bayberry believes investors are overlooking its serious payments infrastructure and has pointed to growing real-world usage, from Ripple’s banking partnerships to increased on-chain activity.

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

Despite the pullback, the XRP chart shows both strong support and lingering resistance. Over a 3-day time frame, the coin remains above a major support zone between around $1.90 and $2.20, which cushioned the latest sell-off.

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

However, XRP price also faces resistance overhead. The 50-day simple moving average near $2.75 has repeatedly capped recent rebound attempts. A decisive break above this level would be necessary to signal any trend reversal.

On the other hand, the 200-day SMA, around $1.71, sits well below and provides a solid safety net if things go south. For now, price is stuck, consolidating just above the golden pocket region, indicating that neither bulls nor bears have a clear upper hand. The chart’s winding pattern could precede a sharp move in either direction.

However, if sentiment turns bullish again, a significant upside target looms at around $5.20 according to technical analysis. But the Ripple token must first reclaim the mid-$3 range, with $3.40 as the major hurdle. Removing this resistance would open the door to new all-time highs.

If conditions become favorable, a further rally could see XRP enter the $5 and above range. Macroeconomic factors and regulation will likely play a significant role in whether XRP can successfully make a comeback through 2026.

A move above $2.75 would likely confirm the start of a new uptrend, potentially propelling prices towards the $4-$5 range by late 2025 or early 2026.

Conversely, a break below $1.90 could lead to a deeper correction towards $1.60, where stronger long-term buyers could step in. Overall, XRP’s technical setup remains cautiously bullish, with clear areas of support and resistance defining its next decisive move.

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