XRP has returned to the spotlight in the crypto community 🌟, not only due to its recent surge in value 💹 but also due to concerns over the level of centralization in its supply 🔒. Some analysts are pointing to the possibility of a sharp correction that could take the coin’s price down to $0.60 soon 💥.
43% of XRP is held by Ripple 🏦
A recent analysis has raised concerns about more than 43% of the total XRP supply, which is still locked and controlled by Ripple 🔑. According to estimates, Ripple controls 38.9 billion tokens in fiduciary accounts 💼, which has investors worried about the possibility of market manipulation 🌀.
One analyst explained that this level of centralization brings to mind crypto tokens with centralized supply ⚠️, which typically raise concerns about control and significant influence by a single entity 🕵️♂️.
XRP Price Drop Predictions 📉
Historical data has shown that XRP tends to experience sharp price spikes followed by sharp corrections 💔. In 2021, the coin rose to nearly $2 💰 before losing about 75% of its value within two months ⏳. In a similar incident in 2018, the coin reached $3.40, but fell by 92% in a short period ⬇️.
Recently, XRP saw a dramatic 410% surge in just one month 🚀, pushing its price to $2.74. However, analysts suggest that the previous patterns could repeat 🔄, meaning a price correction to $0.60 is likely, which would be a significant drop from its current value 🌧️.
Concerns about pumping and dumping operations ⚡
One of the main criticisms of XRP relates to cycles of rapid price increases (pumps) 📈 followed by sharp declines (dumps) 📉. This is because Ripple still owns a large portion of the supply 🎯, which raises concerns about its ability to control the market 🎛️.
Many cryptocurrency enthusiasts see the high centralization of the XRP token as an obstacle to long-term trust in the currency 🛑, which makes it always in doubt 🤔.