Ripple (XRP) finally gave in to the bear pressure in the market over the last few weeks. The declines in the last one week have been particularly overpowering. This has given the bears more reason to send the crypto to the bottom as the bulls take a back into hibernation due to exhaustion and discouragement.
For the first time since the week started Ripple price has dropped below $0.30. This level has been a strong bounce wall preventing further breakdown into the $0.299 -$0.2 range. At the moment XRP/USD is trading below the 21-day Simple Moving Average on the hourly time frame chart. There is still plenty of room for Ripple to correct higher with the stochastic in the same range revamping its direction to the upside after it dipped into the oversold yesterday during the Asian trading hours.
On the contrary, Ripple recently came out of a bear channel that was started on towards the end of November and progressed through to the first week of December. After breaking out of the channel, Ripple has since been stuck in another bear range with no way of coming out of it on the upside. The range limit at $0.32 is the key resistance level while to the south, the range support exists at $0.30.
Ripple bears are back in full swing at the time of writing. XRP/USD is in danger of declines below the primary support at $0.290. If Ripple fails to find refuge at this level, we could see more breakdown heading to $0.25 and eventually $0.2, where Ripple is likely to bottom out before a significant reversal comes into play.
Ripple (XRP) Vs Bitcoin (BTC) Security Models
While speaking in an interview conducted by the Internet History Podcast, Ripple’s chief technology officer, David Schwartz shared his opinion in regards to the mining scenario in the Ripple network while comparing it to that of Bitcoin. He started by saying the purpose for the creation of the XRP ledger was to come out of the chains of using the proof-of-work consensus mechanism used in BTC.
He emphasized this by saying the XRP ledger is not an adversarial system that Bitcoin ledger is. Moreover, there is an unhealthy tag of war among miners in the Bitcoin network where they have to compete for the fixed pool of resources. This situation leads to adversarial interests that always end up making Bitcoin (BTC) complicated to work with.
“It’s not an adversarial system like the Bitcoin ledger is. if you’re mining and I’m mining, we’re competing for sort of a fixed pool of resources and that creates sort of adversarial interests that make the security model more difficult.”
On the other hand, Ripple is characterized by cooperation among the members in the ecosystem. The members work together for the advancement of the protocol. He continued:
“[…] which means that if you’re going to improve the stability of the network, I want you to participate. Because you’re not taking anything away from me and I think that can make a more secure model but it does mean that the system can’t sort of give out the digital asset.”