Ripple - Utility vs. sell offs: Assessing if XRP can breach $2.26

According to a recent Bitwise report, XRP‘s value isn’t just theoretical – it stems from measurable functions within the XRP Ledger.

This includes transaction fees that are permanently burned, serving as a slow but steady deflationary force; reserve requirements that help prevent network spam; and most importantly, XRPs role as a bridge currency in cross-border payments.

Source: Bitwise Investments

It emphasized that while the burn rate and reserve mechanism are modest today, their impact could scale significantly with increased network usage.

Still, the report pointed out that XRPs true potential lies in facilitating liquidity across a large, active ecosystem.

Mounting selling pressure undercuts the fundamentals

Despite its utility-driven valuation, XRP is facing significant short-term bearish sentiment. Data from Coinglass shows a steady decline in the Long/Short Ratio since late April, falling below 0.90 by the 6th of May.

Source: Coinglass

This shift indicates growing dominance of short positions, suggesting traders are increasingly betting against the token.

The weakening ratio shows market skepticism – even as XRPs core use cases remain intact, speculative pressure is driving price action, not fundamentals.

XRP price outlook

XRP traded within a tight range, with price action hovering around $2.14 at press time.

The RSI was at 47.55, suggested neutral momentum, while the MACD hinted at a potential bearish crossover as the blue signal line dips below the orange.