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A famous analyst with half a million followers said that XRP, one of the most popular altcoins in recent weeks, could be drastically changed.
XRP gained more than 400 percent in one month last year, reaching levels not seen since 2018.
The market was particularly excited by the results of Donald Trump’s November elections in the US. According to investors, Republican Party marketing could allow cryptocurrencies such as Ripple Labs, the developer of XRP, to move more easily in their countries.
Warning of a decline of around 80 percent
Crypto Analyst IncomeSharks, on the other hand, does not have a moderate attitude on this issue, unlike many people. Continuing with 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 uses a large amount of XRP in escrow accounts and periodically cuts the locking module of 1 billion XRP. According to IncomeSharks, this creates a level of insecurity that developers can enter 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 space because it is constantly pumping.” The analyst warned in the chart he shared that XRP could decline to $0.60.
Several followers who responded consistently said that every cryptocurrency that enters a bubble, including Bitcoin, is at risk of a major correction, and that does not include XRP.