Connect with us
Active Currencies 14820
Market Cap $2,357,478,366,813.60
Bitcoin Share 51.15%
24h Market Cap Change $-4.40

Ripple’s CTO confirms ‘never happening’ proposal as XRP momentum slides

2min Read
Ripple’s CTO confirms ‘never happening’ proposal as XRP momentum slides

Share this article

  • Ripple’s development head held the firm’s ground on the global reserve currency proposal.
  • XRP’s momentum drifted towards the reds.

A section of the Ripple [XRP] community has long hoped for approval for the token’s buyback proposal since 2021. But all that desire may now be a pipe dream as the project’s Chief Technology Officer (CTO) put a nail to the coffin.


How many are 1,10,100 XRPs worth today?


When asked about his comments on the matter, CTO David Schwartz said it was ridiculous, and directly called it a “scam”.

Offer down and out as XRP slides

This response comes after Ripple’s legal counsel had recently opined that the suggestion was impossible. Those who supported the proposal argued that XRP could become the world’s reserve currency.

And, a buyback XRP rate based on the supply potential held by governments could help a retail reclaim. 

While the legal opinion may have reflected some chance of approval, the public rebuttal from the development team may now mean there is no chance.

Following the clarification, the XRP price lost 2.71% of its value in the last 24 hours while exchanging hands at $0.3989. But does the blockchain-based payment token have the capability to oppose the trend?

According to the daily chart, the XRP momentum was trending downward. At press time, the Relative Strength Index (RSI) was 50.21. The RSI displays the momentum of an asset. And, its movement towards the downside means that XRP had lost its buying power and; subsequently, could head towards an oversold region.

Besides the RSI, the Awesome Oscillator is another indicator that reflects the momentum of an asset. At the time of writing, the AO was above equilibrium.

But its bullish readiness was not in play due to the consistent red bars produced above equilibrium. Hence, XRP had a higher chance to fall to bearish pressure than recovering in bulls’ favor.

XRP price action

Source: TradingView

Community rallies as development activity keep the upside

In addition, some comments under Schwartz’s tweets revealed that a large part of the XRP army had wanted clarity on the matter before now. Surprisingly, many supported the CTO’s stance.


Is your portfolio green? Check out the Ripple Profit Calculator


However, on-chain data showed that Ripple was unperturbed by the outright rejection. This was because the development activity had revived from its downturn at the beginning of February. The development activity measures the devotion of a project to sustaining upgrades on its network.

As of this writing, the metric had surged to 5.5. This implies that Ripple developers were actively contributing at a maximal rate. 

But the weighted sentiment flatlined at -0.321. This metric takes into account the unique social volume. Since it was negative, then it meant that the vast majority of comments towards XRP were not cherry.

Ripple's development activity and weighted sentiment

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.