XRP recovers significantly as Zcash debate divides crypto community

XRP shows resilience in challenging market environment

The entire cryptocurrency market is experiencing a period of significant uncertainty. Over the past six weeks, approximately 25 percent of market capitalization has been wiped out – more than one trillion US dollars in value have been lost^[1]. This development is primarily attributed to declining risk appetite, weaker market sentiment, and dampened expectations for US Federal Reserve interest rate cuts^[1].

In this challenging environment, however, XRP demonstrates remarkable resilience. Over the past 24 hours, the price has fluctuated between approximately 1.889 USD and 2.076 USD, with a current closing price of 2.0422 USD – significantly above the previous day's closing of 1.9172 USD^[1]. Market capitalization stands at around 123.46 billion US dollars^[1].

Technical indicators signal positive momentum

Technical analysis supports the bullish trend. The Relative Strength Index (RSI) stands at approximately 58.70, well above the neutral 50 mark, indicating positive momentum^[1]. The momentum histogram shows positive acceleration, confirming short-term upward pressure^[1].

The width of the Bollinger Bands is approximately 0.2795 USD, indicating moderate yet elevated volatility^[1]. XRP is thus in a consolidation and recovery phase above the 1.889 USD support level^[1].

Institutional developments strengthen XRP

Parallel to positive price performance, XRP has also gained fundamental traction among institutional investors. Grayscale recently received approval for an XRP ETF through the New York Stock Exchange^[1]. Such initiatives make the token increasingly attractive to both institutional and private investors^[1].

Zcash debate sparks controversy

While XRP benefits from positive news, a heated debate over Zcash has erupted in the crypto community. Eric Balchunas, senior ETF analyst at Bloomberg, warned that Zcash could harm Bitcoin at a critical moment^[2].

In a post on X, Balchunas compared Zcash to third-party candidates such as Gary Johnson or Jill Stein, arguing that promoting a separate privacy coin risks "splitting the vote" when Bitcoin requires unified political and cultural support^[2].

Accusations of artificial hype generation

Criticism of Zcash intensified when several industry figures accused supporters of generating artificial hype. Mark Moss, a Bitcoin-focused venture capitalist, posted screenshots of marketing agencies offering paid ZEC partnerships^[2]. Market analyst Rajat Soni warned that the recent excitement around ZEC appears to be an attempt to "find exit liquidity"^[2].

Arman Meguerian, founder and CEO of Timestamp, rejected the notion that Bitcoin supporters would switch to Zcash: "I don't know a single Bitcoin maximalist who is thinking about Zcash at all"^[2].

Winklevoss twins back Zcash

Nevertheless, there are prominent supporters. The Winklevoss twins, founders of Gemini and early Bitcoin investors, recently launched Cypherpunk Tech, the first Zcash-focused treasury company^[2]. In an interview with Cointelegraph, they described Zcash as "encrypted Bitcoin" and argued that Bitcoin is best suited for value storage, while Zcash excels at private transactions^[2]. They view Zcash as complementary, not competitive^[2].