- XRP is down 14% on a daily basis, close to $0.28 handle.
- Brad Garlinghouse doesn’t see the reason to replace fiat with cryptocurrency.
XRP is changing hands at $0.2815 at the time of writing. The third largest digital coin broke below August 30 low at $0.3228 amid global cryptocurrency sell-off and touched $0.2668 during early Asian hours. XRP/USD has lost 14% of its value in the recent 24 hours, while the coins market cap reached $11.3B. The collapse was accompanied by growing volatility and doubled trading volumes, which signals that bears flooded the market.
XRP/USD is deeply overbought, so the short-term upside correction is likely, though the price needs to return to the area above $0.3148 (SMA50, 1-hour chart) for the recovery to gain traction. The ultimate bull’s goal is $0.33, but considering the overall bearish sentiments on the market, it is out of reach so far.
Meanwhile, Ripple’s CEO Brad Garlinghouse denied the possibility of digital money replacing fiat any time soon. Speaking to the Stanford Legal, the podcast hosted by Stanford Law professors Pam Karlan and Joe Bankman, he explained that cryptocurrency is best used for cross-border payments, while fiat works pretty well for paying for everyday needs.
“There are economies where the fiat currency is at best a weak currency. And in those contexts, if I were a consumer experiencing hyperinflation – would you rather hold a cryptocurrency or your fiat currency? And in a lot of those cases, you’re seeing people take their dollars, or not dollars, pesos of various sorts, and saying, ‘I’d rather hold this because it’s a better asset to hold in terms of its potential appreciation and lack of inflation,” he said.
XRP/USD, 1-hour chart
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