Crypto Expert IncomeSharks has raised significant concerns about XRP’s market structure and potential price vulnerabilities. The analyst points to an issue regarding token distribution, noting that over 43% of XRP tokens remain out of circulation.
IncomeSharks draws a stark comparison to hypothetical scenarios in smaller crypto projects, suggesting that such concentration of supply would raise immediate red flags if found in lesser-known tokens. He emphasizes that this supply dynamic has contributed to the cryptocurrency community’s persistent skepticism toward XRP.
The expert’s chart identifies a recurring pattern of pump and dump cycles in XRP’s price action, visible across multiple timeframes including significant events in 2018, 2021, and 2024. These cycles consistently show dramatic price surges followed by steep declines.
Examining current market conditions, IncomeSharks notes that XRP is experiencing another sharp price increase, reminiscent of previous cycles. The cryptocurrency’s monthly chart reveals clear patterns of volatility and cyclical behavior that align with the analyst’s concerns.
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The expert particularly emphasizes how the large concentration of tokens in developer control creates potential for market manipulation. This centralization of supply, combined with historical price patterns, suggests increased risk for investors during price peaks.
IncomeSharks concludes that these factors contribute to XRP’s controversial status within the cryptocurrency space, with the token’s reputation suffering from its perceived tendency toward pump-and-dump cycles.
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