A crypto analyst has made a bold statement about XRP’s current price behavior, arguing that the cryptocurrency’s slow movements are necessary to build strong support levels. The analyst highlights the importance of consolidation and long-term accumulation, suggesting that XRP’s support levels are laying the groundwork for a market reset and a significant price surge. 

The Mind-Blowing Truth About XRP

On Wednesday, crypto market expert Diep Sanh took to X, announcing that he had a mind-blowing message to share with the crypto community. The analyst explained that XRP’s current price action is far more important than many investors realize. According to him, extended periods of consolidation, as XRP is currently experiencing, lay the foundation for major rallies.

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Sanh emphasized that when XRP spends a significant time near the $2 mark, it gives investors the chance to accumulate at that price. He explained that this accumulation builds a powerful layer of support, which can help stabilize the market during future corrections. He also noted that once XRP climbs to a higher region and stays there long enough to form a higher low, a new wave of investors usually enters. This creates the next support base and sets the stage for a major upward move.  

Sanh hinted that XRP could reach dramatic price targets, such as $10 or even $100. However, it would require several of these strong support layers to form over time. Each layer represents greater confidence in the asset and more liquidity to sustain a stronger market. The analyst noted that investors or traders who are frustrated by XRP’s low price and recent downturn are missing the bigger picture. He highlighted that they do not understand how these gradual accumulation phases work or how they can contribute to long-term gains. 

XRP Remains One Of The Best Crypto Plays After Price Dip

In a subsequent analysis, Sanh reaffirmed his confidence in XRP’s future outlook following the recent market downturn. He noted that XRP remains one of the strongest crypto plays despite its recent price crash. The analyst emphasized that the cryptocurrency continues to stand out due to the utility of the XRP Ledger (XRPL), a blockchain network engineered for fast and efficient global payments.  

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Sanh noted that this unique design of XRPL gives it an advantage over many large-cap competitors. Moreover, with regulatory uncertainty largely resolved after the US Securities and Exchange Commission (SEC) dispute, the analyst highlights that XRP has already outperformed most top assets. 

Currently, XRP is trading at $2.2, experiencing a slight recovery despite recording weeks of choppy price action. Sanh disclosed that investors and traders tend to treat such corrections as strategic accumulation periods rather than signs of weakness. He argued that if XRP continues to expand in areas such as cross-border payments, tokenized asset markets, and stablecoin development, it would benefit its underlying structure. He added that these expanding sectors will also provide long-term support for the cryptocurrency’s growth potential.  

Featured image created with Dall.E, chart from Tradingview.com

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Essential Videos

Lars Dittmar Debunks Crypto Climate FUD https://youtu.be/lA3iBUqsGhY
Bitcoin vs. Gold https://youtu.be/B_QaL9fAKoM
Fiat Currency Ponzi Scheme https://youtu.be/L_f6R0DHNH0
What Happens When All Bitcoin Is Mined https://youtu.be/Iyy2-FUAFcU

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– TIMESTAMPS –
0:00 Intro
2:01 Crypto Mining Explained
4:48 Bitcoin Mining Climate Claims
8:41 Bitcoin Mining Energy Use
10:55 Green Energy Bitcoin Mining
13:58 The Real Cause Of Climate Change?
16:54 Conclusion

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Useful Links

► Bitcoin Mining Map: https://cbeci.org/mining_map
► Full 2018 Article From Nature Climate Change Journal: https://www.researchgate.net/publication/328581842_Bitcoin_emissions_alone_could_push_global_warming_above_2C
► Bitcoin Mining Energy Consumption Estimate: https://www.bbc.com/news/science-environment-56215787
► Gold Mining Energy Use: https://www.forbes.com/sites/lawrencewintermeyer/2021/03/10/bitcoins-energy-consumption-is-a-highly-charged-debate–whos-right/?sh=16542fdc7e78
► Square Report On Bitcoin Green Energy Mining: https://assets.ctfassets.net/2d5q1td6cyxq/5mRjc9X5LTXFFihIlTt7QK/e7bcba47217b60423a01a357e036105e/BCEI_White_Paper.pdf
► 70%+ Of Bitcoin Miners Use Renewable Energy: https://www.coinbase.com/learn/crypto-basics/7-biggest-bitcoin-myths
► Bitcoin Miners Reusing Heat Energy: https://braiins.com/blog/green-innovation-in-bitcoin-mining-recycling-asic-heat
► Jeff Booth Discusses Inflation & Climate Change, How Bitcoin Fixes It: https://youtu.be/0Q9_-WDhpoQ

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Crypto Mining Explained

Proof of work is essentially meant to simulate real world resource mining in a digital way with complex equations, hence why cryptocurrency is ‘mined’ by specialized computers called ‘miners.’

There are over 1 million Bitcoin miners around the world, and that’s in addition to the millions of miners processing transactions for other proof of stake cryptocurrency networks like Ethereum and Litecoin.

All this cryptocurrency mining is using a lot of energy and this has many people concerned about the effect cryptocurrency mining could be having on the climate.

‍‍Bitcoin Mining Climate Claims‍‍

Although concerns about crypto’s effect on the climate have been around since Bitcoin began back in 2009, it wasn’t until the 2017 crypto market boom that these concerns started to make the news.

Many of the headlines we see today are almost identical to the ones we saw back then, and most of the statistics cited by today’s and yesterday’s crypto climate critics all come from a single source.

This source is an academic article published in 2018 to nature’s climate change journal. It argues that emissions from Bitcoin mining alone could increase the global temperature by 2 degrees.

When you consider Bitcoin’s comparatively small energy consumption on the global scale, the numbers from this article don’t add up.

Bitcoin Mining Energy Use

Nobody is actually sure how much energy Bitcoin mining uses. The University of Cambridge estimates it could be anywhere between 40 and 440 terawatts per year.

For context, the Netherlands uses 121 terawatts of energy per year, Argentina uses 300 terawatts, and the United States uses a whopping 4000 terawatts.

Bitcoin is not a country, it is a financial system, and when you compare apples to apples, cryptocurrency offers the most energy efficient financial system in the world.

Green Energy Bitcoin Mining

Cryptocurrency mining has accelerated the growth of green energy. This is because miners go to where power is the cheapest, because cheaper power means more profits.

As it so happens, renewable energy sources like wind, solar, geothermal, and hydroelectric cost half as much as coal and natural gas.

While the University of Cambridge estimates 40% of all Bitcoin miners use renewable energy, recent statistics suggest this figure could be as high as 70 percent.

The Real Cause Of Climate Change?

In his book ‘The Price of Tomorrow’, Jeff Booth argues that the common denominator in the world’s environmental woes is actually inflation.

This is because inflation incentivizes spending over saving, which creates unnecessary consumption, waste, and energy usage. By contrast, Bitcoin is deflationary and incentives saving.

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Disclaimer

The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.

#Bitcoin #BTC #mining #climate #crypto

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