XRP gains nearly 2%, Ripple CTO says: Nothing on XRPLedger can move without XRP
- XRP price climbs nearly 2% on the day, the altcoin is back above $0.5300.
- Ripple CTO David Schwartz addresses XRP holder’s concerns about the token’s utility on the blockchain.
- XRP could gain 13% and test the psychologically important $0.6000 level.
Ripple (XRP) is back above $0.5300, early on Tuesday. The native token of the XRPLedger extended its gains after statements by the firm’s Chief Technology Officer (CTO) David Schwart, in a series of tweets on X.
XRP holders raised concerns of the token’s utility following the launch of its stablecoin, Ripple USD (RLUSD).
Daily Digest Market Movers: Ripple CTO addresses holder concerns, fuels gains in XRP
- Ripple CTO made an important statement in a tweet on X. Schwartz said that nothing moves on the XRPLedger without XRP. This highlights the significance of the altcoin on the XRPLedger and assuages the concerns of traders surrounding its utility and future use.
- Ripple made several announcements about its stablecoin RLUSD during the annual flagship conference, Swell 2024. Since then, XRP holders have flagged their concerns surrounding the token’s utility and its future on the XRPLedger.
For a public ledger to resist spam attacks, you need something scarce to fund a transaction so an attacker can't drown the system with infinite garbage. XRPL only uses XRP for this purpose. Unless rules change, nothing can move on XRPL without XRP.
— David "JoelKatz" Schwartz (@JoelKatz) October 27, 2024
- Users raised questions about the “gas” token on the XRP Ledger, how the blockchain resists spam attacks and whether there is a speed and cost reduction for projects in the ecosystem to use XRP.
- Schwartz explained how XRP needs to remain “scarce” and is the only token that the underlying blockchain uses to resist spam attacks.
- If a cryptocurrency is scarce, it implies that there is potential for price gain and is typically considered positive for the token.
Technical Analysis: XRP could revisit $0.6000 level
XRP has been in a downward trend since its March 11 peak of $0.7440. XRP trades at $0.5300 at the time of writing on Tuesday. The altcoin could extend gains by over 13% and revisit its psychologically important level of $0.6000.
The Relative Strength Index (RSI) reads 47, the momentum indicator is sloping upward and headed toward the neutral level at 50.
XRP/USDT daily chart
The altcoin could sweep support at the $0.4780 level that coincides with the lower boundary of the imbalance zone and the July 12 peak for XRP.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Recommended Articles
