A prominent market analyst cautions that XRP could plummet to $0.60, erasing recent gains, while supporters dismiss the claims as fear-mongering (FUD).
XRP's remarkable bull run continues to captivate the crypto market, with its price nearing the $3 mark. Despite a staggering 450% surge over the past month, skeptics highlight underlying vulnerabilities that could destabilize its upward trajectory.
Key Concerns About XRP’s Price Sustainability
Escrowed Supply and Circulating Tokens
Market commentator "IncomeSharks" identifies XRP’s escrow system as a critical risk:
- 43% of total supply remains locked, akin to a meme coin where developers control a large portion.
- Historical patterns suggest XRP is prone to "pump and dump" cycles, exemplified by its 2017–2018 and 2020–2021 volatility.
👉 Why XRP’s escrow mechanism matters
Projected 77% Price Drop
IncomeSharks’ analysis warns:
- Current peak (~$3) could collapse to **$0.60** within weeks.
- This would wipe out 450% gains from November’s rally.
XRP Community’s Counterarguments
Market Cycles Are Universal
Proponents like Moon Lambo note:
- All cryptocurrencies, including Bitcoin, undergo euphoric highs followed by corrections.
Misrepresentation of Supply Dynamics
Analyst "CrediBULL" clarifies:
- Escrowed tokens are released gradually, unlike meme coins.
- The crypto community overlooks this nuance to fuel negative narratives.
FUD as a Bullish Indicator?
Cryptoinsightuk argues:
- Persistent FUD signals XRP hasn’t peaked yet.
- Monthly inflation is overstated: Only 200M XRP (of 1B unlocked) enter circulation monthly.
FAQ Section
Q: Why is XRP’s escrow a concern?
A: Critics argue large locked supplies create sell pressure when released, but proponents note structured releases mitigate this.
Q: How likely is a drop to $0.60?
A: Historical patterns suggest volatility, but market conditions and adoption trends could alter outcomes.
Q: Is XRP’s inflation rate harmful?
A: Only 200M XRP/month enter circulation—negligible impact relative to its $50B+ market cap.
Disclaimer: This analysis is for informational purposes only. Cryptocurrency investments carry risks; conduct independent research before deciding.