ARK Invest CEO and CIO Cathie Wood recently expressed skepticism regarding the utility of the TRUMP meme coin, a new cryptocurrency associated with US President Donald Trump. 

In an interview with Bloomberg TV, Wood noted that her firm has generally avoided investing in meme coins.

Cathie Wood Labels TRUMP Coin Part of the “Meme Coin Moment”

Wood drew parallels to the 2017 ICO movement, which was started by CryptoKitties. Therefore, she categorized TRUMP as part of the current “meme coin moment.” Nevertheless, TRUMP’s utility remained uncertain, according to her.

“So far, we don’t know of much utility for this coin, except that it is a meme point of President Trump himself,” Wood admitted.

She also addressed speculations surrounding the meme coin, noting that one of its rumored utilities is said to be the opportunity to meet the President. However, Wood expressed uncertainty about the validity of such claims.

“I think he’s ushering in the next phase of the crypto revolution,” she added.

When asked about investing in the Trump coin or other meme coins, the CEO clarified that ARK Invest has largely avoided meme coins, instead prioritizing cryptocurrencies with significant utility and potential. 

She highlighted Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) as their primary focus areas, noting that Bitcoin is central to their strategy, with ARKB being one of the larger Bitcoin ETFs. 

Wood also emphasized that Ethereum and Solana play key roles in their private funds due to their importance in supporting decentralized financial services, often referred to as DeFi or “finternet,” which she believes will drive substantial innovation in the crypto space.

“Those we believe are the big three,” the CEO remarked.

However, TRUMP has also gained significant market traction, despite being a new entrant. It boasts a market capitalization of $7.42 billion, securing its spot as the 29th largest cryptocurrency and the third largest meme coin by market cap. 

This rapid ascent has also attracted institutional attention. Rex Shares, for instance, has filed for meme coin ETFs that include TRUMP alongside other meme tokens like BONK and DOGE.

Interestingly, President Trump has admitted to limited knowledge about the TRUMP meme coin. During a recent White House press conference, he acknowledged his unfamiliarity with the cryptocurrency bearing his name.

Meanwhile, TRUMP isn’t the President’s only venture into the cryptocurrency space. In 2024, he also launched World Liberty Financial (WLF), a decentralized finance (DeFi) protocol.

Nonetheless, his involvement with the crypto space has drawn significant scrutiny. Notably, US Representative Gerald Connolly has called for an investigation into Trump’s financial ties to crypto ventures, including World Liberty Financial.

XRP has witnessed a notable rally in the past week, climbing by 35%. The altcoin currently trades at $3.10, slightly below its all-time high of $3.41.

However, on-chain data suggests the token may be overvalued at its current price point. This raises concerns about its ability to break above its all-time high (ATH) as profit-taking straightens among traders.

XRP’s Overvalued Status Could Trigger More Selloffs

XRP’s market value to realized value (MVRV) ratio highlights its overvalued status, standing at 409.47% at press time, according to Santiment data.

The MVRV ratio evaluates whether an asset is overvalued or undervalued by comparing its market value to its realized value. A positive ratio indicates the market value exceeds the realized value, suggesting overvaluation. Conversely, a negative ratio means the market value is below the realized value, indicating the asset is undervalued compared to its original purchase price.

At 409.47%, XRP’s MVRV ratio shows that its market value is 409% higher than its realized value — the price at which tokens were last moved or acquired. In simpler terms, this means that, on average, investors who purchased XRP are seeing a 409% profit compared to their initial purchase price. This could prompt increased selling pressure.

Notably, XRP’s negative Balance of Power (BoP) confirms that this profit-taking is already underway. At press time, this sits at -0.83.

The BoP measures the relative strength of buying versus selling pressure in the market. When the BoP is negative, it indicates that selling pressure outweighs buying. It suggests that more investors are looking to liquidate their positions than to accumulate, which could lead to downward price movement.

XRP Price Prediction: Selling Momentum Threatens to Push Price Lower

As selling activity gains momentum, XRP’s price will fall further from its all-time high. According to readings from its Fibonacci Retracement tool, the altcoin’s price could drop to support at $2.45. 

Conversely, a shift in the market trend toward accumulation would invalidate this bearish projection. In that case, XRP’s price would rally to its all-time high and attempt to break above it.

Bitcoin price struggled to clear the $107,200 resistance zone. BTC is correcting gains and might revisit the $100,000 support zone.

• Bitcoin started a downside correction from the $107,200 zone.
• The price is trading below $104,500 and the 100 hourly Simple moving average.
• There is a key bearish trend line forming with resistance at $103,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start another increase if it stays above the $100,500 support zone.

Bitcoin Price Dips Again

Bitcoin price started a decent upward move above the $103,500 zone. BTC was able to climb above the $104,500 and $105,000 levels.

The bulls even pushed the price above the $106,000 level. However, the bears were active near the $107,200 zone. A high was formed at $107,200 and the price is now correcting gains. There was a move below the $105,000 level.

There was a move below the 50% Fib retracement level of the upward move from the $100,114 swing low to the $107,200 high. Bitcoin price is now trading below $104,500 and the 100 hourly Simple moving average.

On the upside, immediate resistance is near the $103,000 level. The first key resistance is near the $103,500 level. There is also a key bearish trend line forming with resistance at $103,650 on the hourly chart of the BTC/USD pair. A clear move above the $103,650 resistance might send the price higher. The next key resistance could be $104,500.

A close above the $104,500 resistance might send the price further higher. In the stated case, the price could rise and test the $107,200 resistance level and a new all-time high. Any more gains might send the price toward the $112,500 level.

More Losses In BTC?

If Bitcoin fails to rise above the $104,000 resistance zone, it could start a downside correction. Immediate support on the downside is near the $101,750 level or the 76.4% Fib retracement level of the upward move from the $100,114 swing low to the $107,200 high. The first major support is near the $100,500 level.

The next support is now near the $100,000 zone. Any more losses might send the price toward the $88,500 support in the near term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $101,650, followed by $100,500.

Major Resistance Levels – $103,650 and $104,500.