A prominent crypto analyst and early Bitcoin adopter have raised cautionary views about XRP’s price trajectory, triggering debates within the community regarding the possibility of XRP reaching a new all-time high (ATH).
The Wolf, a well-known figure in the crypto space, expressed skepticism about XRP’s future on Twitter. He highlighted concerns over Ripple’s incessant sales of large quantities of tokens and the inflationary impact this could have on the price of XRP. The Wolf doubted that XRP would break into a new ATH, attributing this to inflationary factors.
#XRPArmy be like, "This time, it's different".
Remember to tell yourselves that when Ripple Foundation dumps hundreds of millions of tokens on you, in 2 weeks.
There's a reason $XRP has never, and will never, break into a new ATH. It's called "inflation"… Google it. pic.twitter.com/iMUAl9X22x
— The Wolf (@WolfOfPoloniex) July 18, 2023
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In response to The Wolf’s statement, some users countered his argument by pointing out that XRP’s inflation rate had been relatively low, citing an increase of only 3.8% over the past three years. They emphasized the need to consider longer timeframes when assessing ATH movements.
Another XRP enthusiast disagreed with The Wolf, expressing optimism about XRP’s potential to achieve new ATHs by 2025. They challenged the bearish sentiment, questioning the credibility of The Wolf’s claims while admitting a lack of expertise in technical analysis.
Inflation? In last 3 years inflation is only 3.8% from 50b to 52b
And ur judging ATH macro update in 4hr time frame lol
— satti (@bachhalsati) July 18, 2023
While the community debates the impact of inflation on XRP, another Twitter user emphasized that inflation may not be the sole determining factor for XRP’s performance.
They highlighted the influence of “hype” and referenced the success of Dogecoin, which experienced significant price surges despite its hyperinflationary nature. Additionally, they mentioned the thin order books on exchanges, suggesting that an ATH for XRP could still be in store.
Read Also: As XRP Burn Rate Doubles Over 30 Days, Analyst Says $100 XRP Price Is Certain
In analyzing XRP’s risk using on-chain metrics, Coincodex conducted risk checks and identified potential investment concerns. The 14-Day Relative Strength Index (RSI) for XRP was flagged at 80.13, indicating a potential bearish signal.
Coincodex also noted that despite a significant increase from its cycle low, XRP remained -60.85% below its cycle high, suggesting fluctuations in performance. Additionally, XRP’s price stability was called into question with a volatility rate above 30%, and the yearly inflation rate of 13.26% raised further concerns.
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