- XRP price increases nearly 2% today, pushing the altcoin back above $0.5300.
- Ripple CTO David Schwartz responds to XRP holders' concerns regarding the token's utility on the blockchain.
- XRP may rise by 13% and aim to test the psychologically significant $0.6000 level.
Ripple (XRP) has climbed back above $0.5300 early on Tuesday. The native token of the XRPLedger extended its gains following remarks from the firm’s Chief Technology Officer (CTO), David Schwartz, in a series of tweets on X.
XRP holders expressed concerns about the token’s utility after the launch of Ripple USD (RLUSD), a stablecoin.
Daily Digest Market Movers: Ripple CTO Addresses Holder Concerns, Boosts Gains in XRP.
- Ripple's Chief Technology Officer, David Schwartz, made a significant statement on X, asserting that "nothing moves on the XRPLedger without XRP." This emphasizes the importance of the altcoin within the XRPLedger ecosystem and alleviates traders' concerns about its utility and future applications.
- During the annual Swell 2024 conference, Ripple announced several updates regarding its stablecoin, Ripple USD (RLUSD). Following this, XRP holders raised questions about the token’s utility and its future role on the XRPLedger.
"To protect a public ledger from spam attacks, a scarce resource is required to fund transactions, preventing an attacker from overwhelming the system with an endless stream of useless data. The XRPLedger exclusively utilizes XRP for this purpose. Unless there are changes to the rules, nothing can operate on the XRPL without XRP."
— David "JoelKatz" Schwartz (@JoelKatz) October 27, 2024
- Users have inquired about the “gas” token on the XRP Ledger, the blockchain’s mechanisms for resisting spam attacks, and whether using XRP can reduce speed and costs for projects in the ecosystem.
- Schwartz reiterated the necessity of XRP remaining “scarce” as it is the sole token used to combat spam on the ledger.
- A cryptocurrency’s scarcity often indicates potential for price appreciation, which is generally viewed as a positive attribute for the token.
Technical Analysis: XRP Could Revisit $0.6000 Level
XRP has been in a downward trend since its peak of $0.7440 on March 11 and is currently trading at $0.5300 as of Tuesday. The altcoin could extend its gains by over 13% and aim to revisit the psychologically significant $0.6000 level.
The Relative Strength Index (RSI) stands at 47, with the momentum indicator trending upward toward the neutral level of 50.
On the daily chart for XRP/USDT, the altcoin may test support at the $0.4780 level, which aligns with the lower boundary of the imbalance zone and the July 12 peak for XRP.
