David Schwartz, the brain behind Ripple’s technology, recently shared some interesting thoughts about XRP price movements. Surprisingly, he admitted he doesn’t know what makes XRP’s price go up or down, even though he helped create the system it runs on.
Source: Schwartz X Post
Schwartz noticed something curious. He said XRP’s price and market value follow Stellar (XLM) closely over time. This means when XLM’s price changes, the coin often changes similarly.
XRP and XLM have a shared history. Jed McCaleb, who helped start Ripple, created XLM after he left to begin Stellar. Both tokens try to make sending money across countries easier, but they focus on different groups of users.
Schwartz pointed out the link between XRP and XLM, which could mean that things affecting one token often affect the other. But we are still determining exactly why this happens, and even Schwartz is still determining what drives XRP’s price.
XRP Price Update
Right now, XRP is the seventh most prominent cryptocurrency. Its price increased 1.31% in the last day to $0.5606, while many other cryptocurrencies lost value. XRP’s price bounced back from a low of $0.546 yesterday after moving sideways for a week.
Source: CoinMarketCap
If the coin keeps going up and passes $0.58, buyers are protecting this price level. XRP could then climb to $0.64. If buyers push past this, it might reach $0.74. But if XRP’s price falls, it might drop to $0.551, a vital price level. If it falls below $0.54, the coin could drop further to $0.46 and stay in this range for a while.
Schwartz’s comments give us a peek into how complex cryptocurrency prices can be. Even experts like him find it hard to predict what will happen. The connection between XRP and XLM shows how different cryptocurrencies can affect each other.
For people interested in XRP, watching XLM’s price might give clues about where XRP is heading. But remember, the cryptocurrency market is very unpredictable. Many things can change prices quickly.
Schwartz’s honesty about not fully understanding the coin’s price movements reminds us to be careful when investing in cryptocurrencies. Researching and understanding the risks before investing in any cryptocurrency is essential.
Related Reading | Pro-XRP Lawyer Lowers Odds of SEC Appeal in Ripple Case
Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.
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