A famous analyst with more than half a million followers said that XRP, one of the most popular altcoins in recent weeks, could experience a sharp correction.
XRP has gained more than 400 percent in value over the past month, reaching levels not seen since 2018.
The market was particularly active after Donald Trump won the November elections in the US. According to investors, the Republican Party administration could allow cryptocurrency companies such as Ripple Labs, the developer of XRP, to operate more freely in the country.
Warning of a decline of approximately 80 percent
Crypto analyst IncomeSharks, unlike many others, does not have an optimistic attitude about XRP. Referring to the locked XRPs, the name stated that more than 43 percent of the XRP supply is not yet in circulation, and added, “Imagine looking at Pump Fun and seeing that the developer owns 43 percent of the supply.”
Ripple holds a large amount of XRP in escrow accounts and unlocks 1 billion XRP periodically. According to IncomeSharks, this creates distrust that developers can interfere with the market.
IncomeShark drew attention to the performance of XRP between 2017-2018 and 2020-2021 and said, “There is a reason why this token is collectively disliked in this area because it is constantly pumping and dumping.” The analyst warned in the chart he shared that XRP could decline to the $0.60 level.
Some followers who responded to him said that every cryptocurrency that enters the bubble zone, including Bitcoin, faces the risk of a major correction and that this is not specific to XRP.
Stay tuned.