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Ripple's XRP has been extraordinarily resilient during the nightmare days we've seen in the cryptography market in the last two weeks. Its losses occurred in the one-digit area, while most of the others were in two numbers.
In current adversity, he even managed to move Ethereum and become the world's second largest cryptocurrency by market capitalization. Mind you, this does not mean that it is not losing value. It is, but it is going down smoothly while many other resources (including Bitcoin) are in freefall.
The token is trading at $ 0.354 as we write it, which means it is nearing its first support level ($ 0.32323). If it reaches it, it may rebound (uncertain in the current bearish general market) or fall further to the second support level of $ 0.26704.
Being things as they are, it seems like a good idea to stop for a minute and review some of the basics.
David Schwartz, #Ripple not afraid to give examples for #XRP being theoretically valid as $ 1 million for one. From now on we will forget the "589ers" and establish the "1million & # 39; ers". #XRPcommunity @ LeeR912 @JoelKatz @RippleXrpie @ ipinky77 @bgarlinghouse pic.twitter.com/CAsnByuipR
– Futureboi (@ Futureboi10) 24 November 2018
Almost exactly a year ago, David Schwartz (Ripple Chief Technical Officer and former Chief Cryptographer) published a series of tweets in his official account explaining why a higher price for the XRP token is good for everyone (if you keep XRP or not ). It is about market dynamics.
It all comes down to this: if the XRP becomes very expensive, let's say, a million dollars per token, then a lot of money will flow into the market with the movement of a few tokens. If you have a million dollar XRP token and want to buy a million dollar house, sell your token, get your million and the market will not hear anything because only one token was traded.
The current situation is the opposite. If you want to get a million dollars from your current XRP portfolio (we hope you're so lucky), you'll have to sell 2.79 million tokens. This may not seem like much if you take into account the fact that 1.17 billion XRPs have been traded only in the last 24 hours.
But since you're not the only crypto-aficionado trying to cash out XRP, the added pressure of everyone who, like you, wants to use those millions of dollars for something else, will move the market a lot while, if the price was much higher, the same amount of money will move again and the market will not hear anything. There is a name for this phenomenon: cheaper payments.
The community reacted favorably to Mr. Schwartz's message. One of his followers replied to the tweet in these terms:
"I think you hit the nail on the head.This brilliant plan will involve multiple entities working in coordination.They are 100% agreed that it will happen.But the normative clarity through a global framework, it is possible that we see at the next meeting of the G20 Once established, the plan will start! "
An overly optimistic XRP enthusiast wrote,
"I'm ready guys! I'm in front of the factory @Lamborghini waiting for 1 mil. #XRP just give me a sign!"
And why should you worry about this? Especially if you're not a Ripple fan? This should ensure that the cryptography market will recover and prices will rise again. Why? Because it is the best interest of every investor, every investor and every trader. So do not despair. Just be patient, be disciplined, keep looking at the market and continue reading our articles.
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Disclaimer: this article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and its affiliated companies, employees, writers and subcontractors are cryptocurrency investors and may from time to time have holdings in some of the coins or tokens they cover. Please conduct your own in-depth research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Flickr.
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