Ripple (XRP) Chief Technical Officer (CTO) David Schwartz addressed concerns about token giveaways by the cross-border payment remittance firm.
Schwartz responded to tweets on X and shared his thoughts on why giving away XRP as a reward is worse than selling.
XRP trades at $0.55 at the time of writing.
Giving XRP away is functionally the same as selling it, but worse because people will spend $.95 to game a $1 giveaway and most of the funds wind up in the hands of the fraudsters. We tried this and it worked until XRP became liquid.
— David "JoelKatz" Schwartz (@JoelKatz) March 26, 2024
XRP supply distribution
XRP erased nearly 8% of its value this week, down to $0.55 early on Friday at the time of writing. The altcoin has been in a multi-month downtrend since its July 2023 top.
XRP could sweep liquidity at $0.51 if there is a further correction in the altcoin. At this point, traders who accumulated could attempt to push it back above key support at $0.55 and $0.57.
The Moving Average Convergence Divergence (MACD) indicator shows red histogram bars under the neutral line, signaling negative underlying momentum in the Ripple price trend.
XRP/USDT daily chart
A daily candlestick close above $0.57 could invalidate the bearish thesis. This has been a key resistance level for the altcoin throughout August. XRP could rally toward $0.60, a psychologically important level for Ripple.
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.