A well-known trader within the crypto community has insisted that XRP has the traits of a meme coin, predicting an imminent crash against Bitcoin.
Despite making multiple recoveries above the $2 mark, XRP continues to trade in a delicate position amid a cloud of uncertainty plaguing the broader crypto market.
The volatility, largely influenced by macroeconomic tensions like the ongoing tariff war, has led to unpredictable price movements. Last week, XRP saw a massive price drop alongside the rest of the market, which attracted comments from critics.
For context, on April 9, XRP plunged to around $1.70, following a consistent three-day downtrend. The drop began on April 6, when XRP traded at $2.14, before tumbling more than 17% over the next three days.
Clay Calls XRP Biggest Meme Coin in Disguise
The sharp decline led to a new wave of bearish commentaries from Crashious Clay, a well-known trader recognized for his persistently pessimistic stance on XRP and the wider crypto space.
Crashious Clay claimed that the typical XRP retail investor is financially drained and incapable of sustaining demand. According to him, wealthy investors are currently avoiding risk exposure to XRP, especially in such uncertain conditions.
The trader claimed that all the investors that market participants would typically expect to purchase XRP and help the price action are “burned” with low capital for supporting the market. According to him, whales, or investors with substantial capital, that could have stepped in, are not willing to enter the market due to what he perceives as high risk on XRP.
He claimed that there is massive sell pressure, which he says originates from the Ripple team, insiders, early investors, and long-term holders eager to offload assets. Notably, Clay questioned the current market’s ability to absorb further sales due to a lack of liquidity and new buyers.
He argued that XRP shares many traits with meme coins, such as minimal network activity and insufficient on-chain revenue. For Clay, this lack of utility supports his view that XRP is the “biggest meme coin in disguise.”
Anticipation of a Sharp XRP Crash
He suggested that its current valuation does not show fundamental worth but is rather due to hype and legacy momentum. He shared his trading activity, which showed short XRP positions totaling $7.5 million on XRP in March, calling them some of the “easiest” trades in his career.
As of early April, he claimed to be over $1 million in profit on these shorts and hinted that he has no plans to stop shorting XRP soon.
Interestingly, this was not Clay’s first sharp criticism of XRP. Earlier on, the trader stated that XRP requires exceptionally strong market conditions and intense retail buying to push higher. However, he argued that these conditions are currently absent.
U need very good market conditions and A LOT buy pressure from retail
To overpower sell pressure on a 100B worthless coin and pull a 2x-4x
Right now u don’t have good conditions for something like XRP to do any X’s
and little to zero buy pressure from retail
Yet 100B of…
— Crash (@CrashiusClay69) April 9, 2025
With its market cap around the $100 billion mark, Clay sees XRP as heavily overvalued and susceptible to a crash. He compared it to Shiba Inu (SHIB), which once peaked at a $40 billion market cap before crashing to $4 billion. Clay suggested XRP could face a similar correction.
XRP Still More Resilient Than Most Top Assets
However, while Crashious Clay remains firmly bearish, data shows XRP’s recent struggles are part of a broader market downturn rather than an isolated weakness.
Despite its recent price drop, XRP has proven more resilient than most major assets. Year-to-date, XRP has only declined by 0.58%, whereas Bitcoin has fallen by 10.6%. Ethereum has seen a dramatic 52.88% drop, and Solana has dropped by 33.66% in the same period. This resilience challenges the idea that XRP is on the verge of collapse.
In addition, some former critics of XRP have reversed their positions following its recent performance. Raoul Pal, who once advised investors to exit XRP when it lingered around $0.50 in 2024, acknowledged his mistake after the asset’s explosive surge in November 2024.
Likewise, Mike Novogratz, once bearish on XRP, recognized that its sustained relevance is due in large part to its passionate and committed community.
In contrast to Clay’s bleak projections, other analysts maintain a bullish outlook on XRP. Bobby A, a prominent market observer, noted last month that the $2 range for XRP could, in hindsight, become the next $0.30, a price point many wish they had bought during 2023 and 2024.
Also, in December 2024, market commentator Zach Rector stressed that XRP remained undervalued after hitting $2. Rector predicted that XRP could eventually climb to $48, indicating his belief that the token still holds massive upside potential.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
