Pseudonymous X user IncomeSharks, who has amassed more than half a million followers on the social media platform, believes that XRP might experience a major price correction in the future.
In fact, the analyst believes that the high-flying token might plunge back below the $0.60 level.
The crypto trader has noted that nearly half of the available tokens are not even in circulation. The company continues to hold 38.9 billion tokens in its on-ledger escrow accounts. "There's a reason this space collectively dislikes this token because it's always pumping and dumping.
"On Monday, the price of the token reached a new multi-year peak of $2.81, inching closer to its all-time high of $3.4," he said.
Alex DovbnyaWeiss Crypto has noted that XRP's "meteoric" rise is being fueled by such factors as the anticipated regulatory approval of Ripple's RLUSD stablecoin and the potential launch of an XRP ETF.
It seems that strong buying interest from South Korea contributed to the massive rally. The XRP/KRW pair recorded $6.031 billion worth of volume on Monday on the Upbit exchange.
XRP euphoria is officially back, with members of the community discussing whether or not the token might surge all the way to $100.
However, the token has also attracted significant short interest due to its past history of dramatic crashes.
In April 2021, for instance, XRP surged to nearly $2. However, it ended up collapsing nearly 75% within just two months.
Back in 2018, the token also crashed 92% after hitting its current all-time high of $3.40. It remains to be seen whether this time will be different.
Godfrey Benjamin
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