Ripple Rebounds to $1.29... Why Did a Famous Trader Say He Won't Invest in XRP?

▲ XRP, Korea/AI Generated Image ©

XRP (Ripple) saw a slight rebound at $1.29, but market views are divided between expectations of renewed gains and caution regarding its high market capitalization. While the cryptocurrency market stabilized after the Fed's interest rate hike, and news of Ripple's AI payment utilization and reduced leverage supported the price, famous trader Royal Kane stated he would not invest due to its current high enterprise value and limited upside potential.

According to crypto market tracker CoinMarketCap on September 17 (local time), XRP traded at $1.29, up 0.54% over 24 hours. During the same period, Bitcoin (BTC) rose 0.70%, and the overall cryptocurrency market increased by 1.33%. CoinMarketCap analyzed that XRP rebounded following the overall market recovery as risk assets stabilized after the U.S. Federal Reserve (Fed) raised its benchmark interest rate by 0.25 percentage points on September 16. This rate hike was largely priced into the market, it was assessed.

Among individual factors, the expansion of Ripple's payment utilization was mentioned. Ripple updated the XRP Ledger (XRPL) AI Starter Kit, allowing AI agents to pay for services with XRP and RLUSD through Stripe and Tempo's Machine Payments Protocol. In the derivatives market, open interest fell by 23% to $871 million in less than a month. CoinMarketCap interpreted this as a reduction in existing leveraged positions rather than an increase in new bearish bets, suggesting it may have partially eased selling pressure.

Technically, $1.29, where the 20-week Exponential Moving Average (EMA) is located, was cited as a key support level. This price range also coincides with the 38.2% Fibonacci retracement level. Analysis suggests that if XRP holds above $1.29, it could retest $1.34-$1.40, but if the support breaks, there's a risk of it falling to $1.24. The market is also watching the activation of the XRPL Batch V1.1 hard fork, scheduled for September 29, as a short-term catalyst.

On the other hand, voices of caution regarding XRP's current valuation also emerged. Dubai-based cryptocurrency trader Royal Kane, with approximately 32,000 X followers, stated he would not invest at this stage, arguing that XRP's market capitalization exceeds $81 billion, yet it lacks distinct new products or significant revenue growth. Having invested in cryptocurrencies since 2016, he explained that he prefers small and medium-sized cryptocurrencies with relatively lower market caps and strong narratives.

Kane mentioned that in the past, Solana (SOL) surged 500 times from its low in 2021 based on the 'Ethereum (ETH) killer' narrative, and Pepe (PEPE) rose 1,000 times in 2024, driven by the 'next Shiba Inu (SHIB)' narrative and community. He also claimed that Zcash (ZEC) increased 70 times from its low this year with the 'next Bitcoin' narrative, emphasizing its limited supply and privacy strengths. Consequently, while XRP's immediate support at $1.29, the overall market recovery, and the September 29 network upgrade are considered short-term variables, the valuation debate surrounding its high market capitalization also continues.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*