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XRP price may plummet to $0.6? Analysts warn of a sharp pullback
XRP has recently attracted attention in the cryptocurrency circle not only because of its rising prices, but also because of concerns about its overly concentrated token supply. According to cryptocurrency analyst IncomeSharks, more than 43% of XRP tokens are locked and not circulated in the market, which has raised concerns that the price of XRP may quickly fall back to $0.6.
Ripple holds 43% of XRP
In a recent tweet, IncomeSharks pointed out that nearly half of XRP's supply is locked. Ripple, the company that issued XRP, controls 38.9 billion tokens in its escrow account. This high degree of centralization has investors worried about the risk of manipulation.
"Imagine what you would think if you saw developers holding 43% of the supply at a 'coin speculation party'," said IncomeSharks, suggesting that highly concentrated tokens often raise concerns about manipulation.
XRP price may fall to $0.6
To support his point, IncomeSharks shared a chart showing XRP's historical price movements. The chart shows that XRP's price often experiences sharp rises and falls. In April 2021, XRP once soared to nearly $2, but fell 75% in two months.
Similarly, after XRP reached $3.4 in 2018, it also quickly fell 92%. This shows that the price of XRP is largely affected by speculative trading.
Recently, the price of XRP soared to $2.74, an increase of 410% in a month. However, the chart shows that according to past patterns, XRP may pull back to $0.6 again, nearly four times lower than the current price.
"Pump and Dump" Accusations
IncomeSharks pointed out that XRP is often accused of "pump and dump" because of its sharp rise and fall in price. An important reason for this concern is that Ripple still holds a large number of XRP tokens, which gives them great control over the supply.
“A lot of people don’t trust this coin, and for good reason,” IncomeSharks added, reflecting the general skepticism in the cryptocurrency community.
