XRP has once again captured the attention of the cryptocurrency community, not only due to its recent price surge but also because of apprehensions regarding its centralized token supply. Crypto analyst IncomeSharks has highlighted that over 43% of XRP tokens are still locked and not in circulation, raising concerns about a potential sharp price decline back to $0.60 in the near future.
43% XRP Held By Ripple
In a recent analysis, IncomeSharks emphasized that nearly half of XRP’s total supply remains locked. Ripple, the organization responsible for XRP, retains control over 38.9 billion tokens within its escrow accounts. This degree of centralization has led investors to worry about the potential for market manipulation.
IncomeSharks remarked, “Imagine if you were on a platform like Pump Fun and discovered the developers owned 43% of the supply.” Such centralization often triggers apprehension about possible manipulation, drawing parallels to other tokens with similar distribution patterns.
XRP Price Projection: A Potential Plunge to $0.60
To bolster his argument, IncomeSharks shared a chart illustrating XRP’s historical price trends. The data reveals a recurring pattern of sharp price increases followed by significant corrections. For instance, in April 2021, XRP surged to nearly $2, only to lose 75% of its value within two months.
Similarly, after reaching a peak of $3.40 in 2018, the token experienced a 92% drop shortly thereafter, indicating that its price is significantly influenced by speculative trading activities. Recently, XRP climbed to $2.74, marking a staggering 410% increase within a month. However, the chart suggests a potential correction to $0.60, hinting at a drop of almost 4x from its current price level, aligning with historical patterns.
Pump-and-Dump Allegations
IncomeSharks has pointed out that XRP frequently faces criticism for its characteristic price fluctuations, often described as pump-and-dump cycles. A primary reason for this skepticism is Ripple’s substantial holding of XRP tokens, which grants them considerable control over the token’s supply.
The analyst noted, “There’s a reason why many in the crypto space are wary of this token,” reflecting the prevalent skepticism within the community regarding XRP’s long-term stability and reliability.
