XRP is making headlines again, but not just for its impressive price surge. The token is at the center of a heated discussion in the crypto world, and this time, the concern is about its highly centralized supply. With over 43% of XRP still locked away, some analysts are predicting a sharp drop back to $0.60.
Let’s dive into the story behind the surge and the risks that might follow.
In a recent tweet, IncomeSharks highlighted that almost half of XRP’s total supply remains locked. Ripple, the company behind XRP, controls 38.9 billion tokens through escrow accounts. This level of centralization is a concern for many investors, who worry it gives Ripple too much control over the token’s supply and price.
“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.
To support his concerns, IncomeSharks shared a chart showing XRP’s historical price trends. The chart reveals a pattern: sharp price increases followed by significant corrections.
In April 2021, XRP surged to nearly $2, only to lose 75% of its value within two months. Similarly, after reaching $3.40 in 2018, the token dropped by 92% soon after, suggesting that speculative trading has a big influence on its price.
Is Another Correction Coming?
XRP recently surged to $2.74, marking an impressive 410% increase in just one month. However, the chart suggests that a price correction back to $0.60—almost a 4x drop from its current price—could follow the same pattern seen in past cycles.
Will XRP soar or stumble? Read our XRP price prediction to uncover the potential highs and lows of this game-changing cryptocurrency!
IncomeSharks also pointed out that XRP is often criticized for its frequent price spikes followed by steep drops—patterns similar to pump-and-dump cycles. A major reason for this volatility is Ripple’s large control over the token’s supply, which gives them considerable influence over its price.
“There’s a reason why many in the crypto space don’t trust this token,”
XRP’s price may soar today, but the question remains—how long can it hold up?
XRP might reach a high of $3.99 or an average of $3.07.
At the time of writing, the price of 1 Ripple token was $2.51
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