In a groundbreaking revelation, prominent XRP advocate Crypto Eri has brought to light a statement made by Ripple’s Chief Technology Officer, David Schwartz, in a Twitter post concerning the price of XRP in the context of facilitating large cross-border payments. In response to a question on Quora about institutions possibly favoring a low XRP price for payment transactions, Schwartz’s remarks emphasize the importance of higher prices for achieving liquidity and cost-efficiency.
Lot's of nuggets on Quora.
— 🌸Crypto Eri 🪝Carpe Diem (@sentosumosaba) September 24, 2023
Taking about #XRP
"Higher prices tend to correlate with higher liquidity, which means cheaper payments"
"So a higher priced asset is a better vehicle for payments, at least if you're targeting high value payments." pic.twitter.com/pqfFFZKsuc
In his response, Schwartz addressed concerns about banks adopting Ripple technology and its potential impact on XRP’s market price. Contrary to the notion that lower XRP prices would benefit banks, Schwartz argued that higher prices were more conducive to mainstream adoption. He explained that regardless of price, the XRP required for a $1 million payment would always be at least $1 million.
Schwartz’s key point was that higher prices correlate with increased liquidity, resulting in more affordable transactions. To illustrate this, he drew a comparison with Bitcoin, noting that using it as an intermediary currency for a $1 million transaction when its low price would lead to significant price fluctuations due to limited liquidity.
However, when Bitcoin’s price exceeds $26,000, as in the current market, large transactions become more feasible without causing significant market disruptions. Schwartz believes a similar principle applies to XRP, emphasizing the role of higher prices in reducing the fraction of the total asset required for significant transactions.
Currently, XRP stands at a critical support level of around $0.48, a juncture that could shape its future trajectory. Recent weeks have seen XRP price fluctuations, starting at approximately $0.5035 on September 10, dipping to $0.4690 on September 11, and then rebounding to $0.5152 by September 21. XRP is currently trading at $0.4945, and within the past 24 hours, it has witnessed a decline of 3.25%.
One noteworthy aspect of XRP’s recent price movement is the convergence of moving averages, often an indicator of potential trend changes and increased volatility. However, it’s essential to remember that moving averages are not definitive indicators and must be considered alongside other factors.
While XRP teeters on the $0.48 support level, the lack of robust network activity raises questions about the asset’s short-term price potential. The convergence of moving averages adds complexity to any predictive analysis, particularly amidst the broader cryptocurrency landscape’s relative stagnation.
Analyzing XRP’s daily time frame, it becomes evident that the price has been on an upward trajectory since September 11. This ascent marks the completion of a double bottom pattern, typically viewed as a bullish indicator. Subsequently, XRP initiated its ongoing upward trend, maintaining its bullish momentum.
