Renowned crypto figure, The Wolf, questions XRP’s long-term potential and all-time high prospects due to inflationary concerns and Ripple’s token sale.
The Wolf, a well-known crypto personality, recently expressed his concerns on Twitter regarding the long-term viability of XRP. The Wolf calls himself a Bitcoin pioneer. He expressed doubt about the probability that Ripple would reach a new all-time high (ATH) owing to inflationary worries and expressed concern about the potential implications of the Ripple Foundation selling a significant number of tokens in the near future.
The XRP community criticized The Wolf for his comments. It was noted by a number of individuals that the inflation rate for Ripple has been relatively low, rising by only 3.8% during the preceding three years. They warned against using limited time frames to study ATH movements and voiced faith in XRP’s capability to achieve new ATHs before 2025.
However, others disagreed, supporting The Wolf’s views on the impact of inflation on XRP’s performance. One Twitter user pointed out the influence of “Hype,” using Dogecoin’s hyperinflation as an example of a successful cryptocurrency. Additionally, the user highlighted the thin order books on exchanges, reinforcing his belief in Ripple’s potential to achieve an ATH.
XRP’s Risk Assessment Through On-Chain Metrics
Concerns regarding possible investment dangers were raised when a well-known market tracker, Coincodex, ran automated risk assessments on Ripple. The 14-Day Relative Strength Index (RSI) of Ripple was recorded at 80.13, indicating a likely bearish trend.
Technical indicators like the RSI are employed in financial markets to spot overbought or oversold circumstances that might portend trend reversals. Ripple around 80.13 may be seen as a potential negative indication, according to Coincodex’s analysis.
Despite a tremendous rise of 583.73% from its cycle low, the market tracker also showed that XRP was -60.85% below its cycle high, indicating performance swings. In addition, concerns were expressed regarding the stability of the Ripple price due to the 30-day volatility rate being above 30%. Given the production of 6.12 billion coins last year, Coincodex also noticed problems with the annual inflation rate of 13.26%.
Several encouraging pieces of evidence indicate that XRP’s bullish movement may be revived amid the discussions and worries. Notably, Ripple has been seeing about two million transactions every six seconds on a global scale.
As of now, XRP trades at $0.8170, showcasing a cumulative 65% growth over the past week. The future of Ripple remains uncertain, with analysts and enthusiasts offering differing perspectives on its potential to break into a new all-time high. As the crypto market continues to evolve, investors and traders alike will closely monitor the developments surrounding XRP and its performance.