XRP has witnessed one of the most iconic price breakouts in the cryptocurrency market, but to one analyst, this momentum does not add up.
Rajat Soni has questioned the legitimacy of XRP’s growth, describing it as ‘not natural’ and suggesting it could be part of a ‘pump and dump’ scheme, he said in a post on X on December 3.
Soni highlighted XRP’s 435% surge since November 2 while pointing out its relatively modest 11% growth since 2018, which he called inconsistent.
He argued that the price movements defy typical market trends and advised investors to approach the asset cautiously.
“I find it crazy that so many people are messaging me about XRP. If you can’t see that this is a scam, you deserve to be scammed. The way that the price is rising is not natural. This is not how markets work. Seems like a pump and dump to me,” he said.
Soni labels XRP a scam
This is not the first time Soni has criticized XRP. In December 2023, he labeled the Ripple-affiliated asset a scam, accusing it of centralization.
The financial educator claimed that Ripple Labs controls the XRP Ledger and a significant portion of the token supply, implying the company could manipulate the code or issue more tokens.
It is worth noting that Ripple does not control the XRP Ledger, as changes require validator approval rather than unilateral decisions. XRP’s total supply is also capped at 100 billion tokens, which has remained unchanged since its pre-mining phase.
In the same vein, Ripple regularly releases XRP from escrow to maintain liquidity, support partnerships, and fund operations. The December release is emerging to be one of the largest in 2024.
Indeed, Soni, a vocal advocate for Bitcoin (BTC), has been at odds with the XRP community regarding his take on cryptocurrency in the past.
Drivers of XRP’s rally
XRP’s rally aligns with broader cryptocurrency market trends, buoyed by Donald Trump’s election victory, which is expected to usher in crypto-friendly policies.
The resignation of SEC Chair Gary Gensler has also fueled optimism, as analysts suggest XRP’s previous consolidation stemmed from litigation by Gensler’s SEC against Ripple.
Additionally, speculation about a potential XRP exchange-traded fund (ETF) is driving investor confidence, with whales increasing their position in the asset.
In this case, data from on-chain analytics platform Saintly revealed that whales accumulated 160 million XRP over the past weekend, valued at approximately $380 million.
XRP price analysis
XRP was trading at $2.65 by press time, marking an 82% gain in the past seven days. The $2.50 level currently serves as key support, with analysts targeting a $3 valuation.
Elsewhere, a technical analysis shared by CryptoInsightsUK on December 4 highlighted bullish signals on XRP’s four-hour chart. The Stochastic oscillator indicates a hidden bullish divergence, a pattern often preceding price increases.
Furthermore, the relative strength index (RSI) has cooled, suggesting potential for renewed upward momentum. Past instances of the Stochastic oscillator moving from oversold to neutral territory have also aligned with XRP’s upward trends, adding to the bullish outlook.
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