A market analyst points to quick exhaustion in XRP price rallies as a reason behind the constant antagonism the altcoin faces.
While XRP has delivered impressive gains during specific periods over the past 11 years, many view its inconsistent performance as reasons for its unpopularity. Amid the ongoing consolidation, analyst IncomeSharks recently discussed why the altcoin often finds itself under criticism.
XRP’s Brief Rallies
In an analysis this morning, IncomeSharks highlighted XRP’s recurring pattern of brief rallies, often lasting four to five weeks before leading to sharp corrections.
His initial commentary came up on Dec. 3, in which he pointed out that the latest XRP rally had lasted just over four weeks. The rally, which began on Nov. 5, saw XRP surge from $0.5031 to a seven-year high of $2.9 by Dec. 3. This marked a 476% gain. However, the uptrend stalled at $2.9, and a pullback followed shortly.
By Dec. 9, XRP had continued to correct. At this point, IncomeSharks noted that XRP’s rally had just barely extended to five weeks, breaking its historical trend of four-week surges.
$XRP – In over 6 years it’s only ever had a rally last 4 weeks. This time it just barely made it 5 weeks. Now to see if it can finally hold a rally for once. Bias is thinking this time will be different. https://t.co/KGcAD8tuto pic.twitter.com/qXrQn5LBOu
— IncomeSharks (@IncomeSharks) December 9, 2024
He questioned whether the asset could sustain its momentum and suggested that its consistent inability to maintain rallies contributed to its negative reputation among long-term investors.
However, XRP’s pullback was not isolated. Notably, the decline coincided with a broader market correction. Nonetheless, Bitcoin was able to rebound mid-month to reach a new all-time high of $108,364 on Dec. 17. Despite Bitcoin’s push, XRP failed to retest the $2.9 peak, with the bears attempting to push it below $2.
Not Attractive to Long-Term Investors
In his latest disclosure today, IncomeSharks summarized his critique of XRP, stating that its pattern of four-to-five-week rallies every few years is not a bullish characteristic.
$XRP – If you didn’t hate this token before you maybe can understand why it’s so disliked by people that have been around to see how it behaves. Pump for 4 to 5 weeks every 3 years isn’t a bullish thing. Great trade if you caught the pump and realized profits. https://t.co/E5zwx9wYCf pic.twitter.com/Nwjy006kvG
— IncomeSharks (@IncomeSharks) December 31, 2024
He argued that while XRP presents opportunities for short-term traders, it fails to provide consistent returns for long-term investors. His accompanying chart suggested that this pattern of brief rallies occurred from late 2017 to January 2018 and from late March to late April 2021.
However, IncomeSharks failed to observe that in 2017, XRP’s bull run lasted for more than four weeks. XRP first rallied from $0.00570 in February to $0.0615 in March 2017, then consolidated before another four-week rally pushed it to $0.3988 in May 2017. After another pullback, XRP rallied again to $3.31 in January 2018.
Ripple Escrow Practices
Meanwhile, in addition to its brief rallies, XRP faces criticism for Ripple’s monthly sales of XRP from escrow accounts. Ripple, which controls nearly 40 billion XRP in escrow, releases 200 million tokens every month.
Some critics claim these regular sales suppress XRP’s price and hinder its growth, contributing to the perceived underperformance. However, Ripple execs have consistently refuted these claims.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
