XRP gains as 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.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
