XRP rise 480% In The Past Year: Should You Invest Now?

In the past 12 months, the cryptocurrency XRP (CRYPTO: XRP) has increased in value by over 480%, drawing significant attention from investors. When an asset appreciates in value this rapidly, it is essential to reassess the reasonableness of the investment. Unlike some other cryptocurrencies, XRP (also known as Ripple) has practical applications in the real world. The blockchain of XRP can act as an intermediary currency in cross-border transactions, helping to save both time and costs compared to traditional financial systems. However, the recent strong bullish trend also raises the question: Is XRP being overvalued? Here are three reasons why this may not be the right time to buy XRP.

1. XRP Very Volatile If you have ever invested in cryptocurrency, you are surely familiar with the volatility of this asset class. However, XRP is no exception, and its level of volatility can cause many investors to hesitate. For example, in February of this year, the price of XRP fell by about 30% in just 5 weeks. After that, this coin slightly recovered, but continued to drop another 16% in a week, right after the Trump administration announced new tariffs in early April. Such large fluctuations occur continuously over a short period, clearly reflecting the high level of risk associated with XRP. If you are an investor who cannot withstand the psychological pressure from price volatility, then XRP may not be the right choice.
2. XRP is Highly Speculative Some recent bullish trends of XRP can be partly explained, for example: the excitement of investors before the possibility of launching dedicated ETF funds for XRP, or the fact that the US government has a more open stance towards encryption. However, much of the bullish momentum still comes from speculative factors. Some analysts have predicted that XRP could soar to 25 USD thanks to ETF funds — but also warned that afterward, the price could plummet by up to 90%. This indicates that market expectations can sometimes be overly inflated, not reflecting reality. Recently, XRP has increased by more than 70% in just one month, after the U.S. House of Representatives passed two bills, the Genius Act and the Digital Markets Clarity Act, which clarify the legal framework for cryptocurrencies and stablecoins. While this is good news, a rise of up to 70% is excessive, indicating that many investors are simply "following the trend."
3. XRP Has Been Overvalued After a strong bullish increase of 480%, it can be said that XRP is being valued with perfect expectations: from ETF expectations, reduced legal pressure, to the practical application of Ripple's blockchain. The issue is: the potential for the next bullish move will largely depend on market sentiment, rather than fundamental factors. Unlike stocks – which can be valued based on cash flow, revenue, or profit – cryptocurrencies like XRP lack clear quantitative indicators, making it difficult to assess their fair value. This means that if expectations regarding the ETF or the adoption of blockchain do not materialize as anticipated, then the price of XRP may adjust significantly. Summary: Should Consider Before Buying XRP Right Now It is undeniable that XRP has potential, especially with its role as a bridge currency in international payments. However, with the bullish surge over the past year, the risk of a correction is something that cannot be overlooked. If you are a long-term investor, willing to endure significant volatility and believe in the future of Ripple, XRP may still be an option. But if you are cautious or not accustomed to the extreme volatility of the cryptocurrency market, then this may not be the ideal time to "get on board".