XRP has surged over 600% since November, reaching a market cap of approximately $190 billion. Despite this rapid increase, concerns arise regarding its valuation in relation to on-chain activity, as XRP's market cap is 2,200 times its total value locked (TVL) of $87.74 million. Recent trading volumes on the XRP Ledger have been minimal, and daily app fees total only $1,467. While supporters believe this valuation reflects potential growth in settlement volumes and adoption, analysts caution that XRP appears overvalued compared to Ethereum, which has a better market cap-to-TVL ratio of 5.6. Additionally, technical indicators signal potential weakness, with a bearish divergence suggesting a possible pullback to around $2.32, a 25% decrease from current levels. This level aligns closely with XRP's realized price over the past six months, where many holders purchased their tokens. Such a retracement could flush out weaker hands before any rebound, leaving room for future growth if demand increases.

Source 🔗