XRP Price Crash to $0.60? Analysts Warn of Sharp Correction
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XRP has once again drawn attention from the crypto community, not just for its recent price surge but also for concerns about its centralized token supply. According to Crypto analyst IncomeSharks, over 43% of XRP tokens remain locked and are not in circulation, raising fears of a sharp drop back to $0.60 soon.
43% XRP Held By RippleIn a recent tweet post, IncomeSharks pointed out that nearly half of XRP’s total supply remains locked away. Ripple, the company behind XRP, controls 38.9 billion tokens in its escrow accounts. This level of centralization has raised worries among investors about the potential for manipulation.
https://twitter.com/IncomeSharks/status/1863717475168424230“Imagine if you were on Pump Fun and saw the developer owned 43% of supply,” the analyst remarked, drawing parallels to tokens with high centralization, which often trigger concerns about manipulation.
XRP Price To Plunge To $0.60To support his critique, IncomeSharks shared a chart showcasing XRP’s historical price trends. The chart reveals a familiar pattern, sharp price spikes followed by steep corrections. In April 2021, XRP soared to nearly $2 but lost 75% of its value within two months.
Similarly, after hitting $3.40 in 2018, the token plunged by 92% shortly after, suggesting its price is heavily influenced by speculative trading.
Recently, XRP surged to $2.74, marking an impressive 410% rise in just one month. Meanwhile, the chart hints at another possible correction to $0.60 a drop of almost 4x from its current price level, following past patterns.
Pump-and-Dump AllegationsIncomeSharks pointed out that XRP is often criticized for its frequent price jumps followed by steep drops, known as pump-and-dump cycles. A big reason for this concern is that Ripple still holds a large amount of XRP tokens, which gives them significant control over its supply.
There’s a reason why many in the crypto space don’t trust this token,” IncomeSharks added, reflecting the general skepticism in the community