XRP price bearish momentum to fade away provided it can reclaim this crucial support
|- XRP price bounces back after a 12.5% decline over the past week ahead of expected spot Bitcoin ETF approval.
- Ripple CTO David Schwartz states that the crypto market is still in its early stages and that a "winner" is yet to be found.
- Schwartz reiterates Ripple's strategy of reducing XRP holdings as quickly as possible.
XRP price is noting the initiation of recovery ahead of the potential spot Bitcoin ETF approval from the Securities & Exchange Commission (SEC). Ripple had its moment during the lawsuit proceedings last year and is now set to experience bullishness from broader market cues.
Ripple CTO shares company plans
The Chief Technology Officer (CTO) of Ripple, David Schwartz, recently took to X, formerly Twitter, to answer a couple of questions regarding the company and its plans. Replying to a tweet about Ripple's core business regarding XRP dumping, Schwartz noted,
"Ripple has two choices. We can continue to hold as much XRP as we do or we can reduce the amount of XRP that we hold. There really isn't any third option. Ripple's original plan was to reduce our XRP holdings as quickly as we could.
The Ripple executive further stated that, according to him, the crypto space is still in its early stages and that finding a winner is going to take some time. He said that the crypto market is dominated by factors that affect all cryptocurrencies equally and drew a comparison between crypto and the search engine space.
"The same thing happened with search in the 90's,” said Schwartz. “If I was trying to hire you to work at Google, I would explain to you that search is the next big thing and the market was going to explode and make us one of the world's most valuable companies.”
But I could also say that trying to hire people at [Ask.com, AltaVista, Lycos, Yahoo, Ask Jeeves],” Schwartz continued. “The market started working out that search was a big deal before it was able to work out that Google would be the winner.
This is a bold comparison, considering that Alphabet, Google's parent company, is the fourth biggest company in the world today, with a market capitalization of $1.73 trillion. While Ripple may or may not reach this market capitalization even when the crypto market peaks, it certainly is among the top crypto assets already.
XRP price to see growth
XRP price, trading at $0.562 at the time of writing, bounced off the crucial support of $0.551 after falling by nearly 12.5% in the past week. This two-month low price point has been tested as support and resistance multiple times in the past, and falling through it would have boosted the bearish momentum.
However, if the altcoin can maintain the newfound bullish momentum and recover to $0.600, it might be able to wipe off the losses witnessed in the past week. This is a likely outcome considering the upcoming spot Bitcoin ETF approval, which might trigger a bull run in the next 48 hours.
XRP/USD 1-day chart
On the other hand, if the money flows into Bitcoin and the altcoins take a hit, XRP price might see a decline to $0.540, losing which would invalidate the bullish thesis.
Ripple FAQs
What is Ripple?
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.
What is XRP?
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.
What is XRPL?
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.
What blockchain technology does XRP use?
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.
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