Expert Explains Why XRP Could Dump to $0.60 and Lose All Its Gains

A market observer warns of a potential price drop to $0.60 for XRP amid the ongoing frenzy, while proponents counter the arguments as FUD.

XRP has continued to amaze the crypto market as its ongoing bull run shows no signs of slowing down. Its price is now approaching the $3 range.

While this performance has been remarkable, especially considering a massive 450% growth over the past 30 days, critics are now voicing concerns about the sustainability of the uptrend. They point to underlying weaknesses that could spell trouble for those entering the market at the peak of the hype.

One widely followed market commentator, “IncomeSharks,” has raised red flags regarding XRP’s supply, and the volume of tokens still locked in escrow. The analyst highlighted that over 43% of XRP’s total supply is not yet circulating. He drew a comparison to a hypothetical meme coin where the developer owns 43% of the total supply.

“XRP Could Dump to $0.60”

According to IncomeSharks, this situation is one of the key reasons why XRP is “disliked” in the community. The commentator argued that XRP’s price actions have historically followed a pattern of “pump and dump.”

To support this, IncomeSharks shared a historical chart showing how XRP surged from just a few cents in 2017 to its all-time high in January 2018, only to experience a significant price crash months later. A similar pattern was observed during the 2020/2021 market cycle. However, this occurred on the back of the SEC vs. Ripple lawsuit.

Accordingly, the analyst’s chart warns that the 450% gains XRP has enjoyed since November could soon be wiped out. The data projects a potential drop from its current peak near $3 to as low as $0.60 in the coming weeks. This would mark a 77% price drop from current levels.

Furthermore, IncomeSharks argues that when the XRP pump inevitably fades, hundreds of billions will flow into other projects. He claims those who have been patient will reap the rewards. On the other hand, those who FOMO-buy XRP at the peak will be left holding the bag for another five years.

XRP Army Counters Claims

However, XRP proponents have resisted IncomeSharks’ claims. Commentators like Moon Lambo point out that virtually all crypto assets, including Bitcoin, experience periods of heightened euphoria followed by price drops, noting this pattern is not unique to XRP.

Meanwhile, others have refuted the accusations concerning XRP’s circulating supply. Technical analyst “CrediBULL” explained that no meme coin has tokens locked in escrow, released gradually over extended periods. He emphasized that the broader crypto community is well aware of XRP’s supply dynamics but chooses to ignore this fact to fit a flawed narrative.

Ongoing FUD is a Bullish Sign for XRP

Similarly, market commentator Cryptoinsightuk argued that the ongoing FUD surrounding XRP is actually a positive sign. He claims that the present rend implies XRP has yet to reach the peak of its rally.

He noted that influencers are spreading misinformation about XRP on social media because they have “mentally disregarded” the asset. “When they convert to positivity, I’ll be more cautious,” he said.

Additionally, Cryptoinsightuk clarified the misconception that XRP experiences monthly inflation of 1 billion tokens. While it’s true that Ripple unlocks 1 billion XRP each month, 800 million tokens go back to escrow.

As a result, only 200 million tokens are released into circulation each month, which he believes has minimal impact on the market price.