Ripple's Founder Warns: XRP's 'Fundamental Flaws' May Lead to More Downside

Ripple's Founder Predicts 'More Downside' for XRP, Citing 'Fundamental Flaws'

Ripple's co-founder and former CEO, Chris Larsen, has expressed concerns about the future of XRP, the native cryptocurrency of the Ripple network. In a recent interview, Larsen predicted 'ore downside' for XRP, citing 'fundamental flaws' in the cryptocurrency's design and governance.

Larsen's comments come as XRP faces challenges in breaking its all-time high, currently 10% away, with transaction losses dampening investor sentiment. Despite short-term hurdles, the resilience of long-term holders suggests potential support for XRP's upward movement.

Key price levels to watch include $2.95 for support and $3.40 for potential breakout, while a fall could push XRP down to $2.73. This article explores the current state of XRP, focusing on investor sentiment, critical price levels, and potential future movements.

XRP's Transaction Volume and Investor Confidence

XRP's recent transaction activity has been dominated by losses, raising concern among investors as the cryptocurrency struggles to establish any upward momentum. The reluctance of investors to buy at these levels has resulted in a noticeable decline in transaction volume. Investor confidence appears shaken, particularly as many holders have reported losses over the last two weeks. This shift in sentiment reflects broader challenges within the altcoin market.

Should these trends persist, we may see a reluctance among traders to engage with the asset, potentially leading to reduced on-chain activity. A continued decline in participation could adversely affect XRP's pricing, increasing the likelihood of extended consolidation phases or drops below critical support levels.

Long-Term Holders Show Resilience

Despite the prevailing transaction losses, data from the MVRV Long/Short Difference reveals that long-term holders (LTHs) of XRP continue to remain in profit based on their entry points. This group's reluctance to sell has played a crucial role in providing stability amidst turbulent market conditions. The retention of these assets by LTHs signals a belief in XRP's future potential, mitigating sharp price corrections.

This sustained holding behavior could prove essential for XRP's price trajectory. If LTHs persist with their strategy, the chances of recovering bull