In the ever-evolving world of cryptocurrency, XRP continues to divide opinions, with prominent crypto trader Sensei remaining firm in his negative stance. Despite recent developments, including the launch of Grayscale’s XRP Trust, Sensei has reiterated his view that XRP remains a “low-quality cryptocurrency,” doubling down on his short position against the asset.
Grayscale Investments, one of the largest digital asset managers, recently introduced its XRP Trust in response to the legal victory Ripple secured in its years-long battle with the U.S. Securities and Exchange Commission (SEC). Although the ruling in Ripple’s favor could still face appeals, Grayscale’s move signals a significant step forward for the asset, mirroring the path it took with its Bitcoin and Ethereum trusts.
This launch has sparked renewed optimism among market analysts, with some predicting that an eventual XRP exchange-traded fund (ETF) could draw substantial capital inflows. Following Grayscale’s announcement, XRP saw a notable surge, hitting a price of $0.588 on September 12, its highest level in weeks.
However, Sensei, undeterred by the market’s response, took to social media platform X (formerly Twitter) to disclose his decision to short XRP, maintaining that the asset is still a “shitcoin”—a derogatory term he often uses for cryptocurrencies he deems unworthy of investment.
Sensei’s Persistent Criticism of XRP
Sensei’s critique of XRP has been consistent, branding it a low-quality token despite its growing role in cross-border payments and Ripple’s ecosystem. His public statements came as XRP’s price corrected slightly to $0.5820 on September 12, and after he disclosed his short position, the token continued to slide, closing at $0.5336.
While this price decline was partly reflective of broader market trends, XRP still outperformed other digital assets during the period. It recorded a 5% price increase compared to Bitcoin’s modest 1.39% gain on the same day. The following day saw XRP closing above $0.57, marking its first significant close since late August.
Sensei’s skepticism is rooted in his belief that XRP has lost its market relevance. He has pointed out that XRP’s market dominance has plunged from 32% to 1.5% over the past seven years. Additionally, he criticized the token’s underperformance during the 2021 bull run, arguing that XRP failed to match the explosive growth seen in assets like Bitcoin and Ethereum.
Market Outlook – History Repeating Itself?
While Sensei’s bearish outlook aligns with past criticisms of XRP, it’s worth remembering that the token has defied expectations before. In the 2017 bull market, XRP stunned the crypto world with a 110,000% price increase, going from $0.003 to an all-time high of $3.31 in January 2018.
Some market analysts, like Dark Defender, believe that XRP could stage a similar comeback during the current market cycle. However, the outcome remains uncertain, depending on broader market conditions and potential regulatory developments, particularly the Ripple-SEC lawsuit’s future.
Also Read: Ripple (XRP) Surges 14% In A Week, But Can It Sustain The Momentum?
As XRP continues to experience price fluctuations and mixed market sentiment, the token remains a lightning rod for debate. Sensei’s criticism reflects a broader skepticism that persists despite positive developments like Grayscale’s XRP Trust launch. While some believe XRP could surprise the market again, others, like Sensei, argue that the token lacks the long-term potential to thrive.
Whether XRP can overcome its detractors and capitalize on the momentum generated by Grayscale’s bold moves remains to be seen. One thing is certain: XRP will continue to be a focal point in the crypto space for some time to come.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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