XRP Bottom Support Holds Strong: A Healthy Sign For Price?

XRP has once again found itself in a state of relative stability. Despite minimal gains, the crypto is holding firm at $0.5, showcasing a remarkable resilience over the past 24 hours. However, the intriguing aspect of this scenario lies in the technical analysis and upcoming developments that may hold the key to XRP’s future trajectory.

Recent price analysis reveals that XRP is currently being held in check by the 50-day Exponential Moving Average (EMA), capping its price at $0.5027. Furthermore, another significant seller congestion point looms at $0.505. 

This data paints a clear picture of the cryptocurrency’s sideways trading pattern, indicating that XRP is likely to remain within this range until it encounters a market-shifting event. The forthcoming update on the XRP Ledger has the potential to be precisely that.

XRP: Current Status

As of now, the Ripple native currency is priced at $0.505186 via CoinGecko, marking a modest 0.3% gain in the past 24 hours. However, its performance over the past seven days reflects a minor loss of 0.8%. According to expert analysis, traders should anticipate a consolidation phase in the range of $0.4950 to $0.5050 for the foreseeable future.

XRP market cap currently at $26 billion. Chart: TradingView.com

A glance at the weekly chart reveals a market in equilibrium, with neither the bulls nor the bears asserting dominance. This sentiment aligns with the declining trading volume, hinting at a potential breakout once XRP can secure a position above the interim zone of $0.55. A pivotal resistance level of $0.5848 awaits, promising a substantial rally if breached.

Ledger Update

The crypto community’s hopes are pinned on XRP’s upcoming update, version 1.12.0, which incorporates two transformative features. This update merges the XLS-30 Automated Market Maker (AMM) and the XLS-39 Clawback specification into the XRP Ledger’s protocol. 

1/ We’re excited to announce that the XLS-30 AMM spec and XLS-39 Clawback spec have merged to the latest version of rippled 1.12.0.https://t.co/zbg8G4PHsC

— RippleX (@RippleXDev) September 6, 2023

The brainchild of Ripple’s CTO, David Schwartz, and Aanchal Malhotra, RippleX’s Head of Research, the proposal behind XLS-30 aims to enhance returns for liquidity providers in the AMM while mitigating the risks posed by market volatility.

Anticipated Recovery

The technical indicators also hint at an impending recovery for XRP. With the cryptocurrency testing the lower boundary of the Bollinger Bands, historical data suggests a tendency to revert to the indicator’s middle, indicating that the bulls might soon take charge.

XRP’s current sideways trading may be a precursor to significant movement, with the upcoming XRP Ledger update holding the potential to act as a catalyst for change. Crypto enthusiasts and traders will be watching closely as XRP navigates this pivotal juncture in its journey through the cryptocurrency market.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Times Tabloid

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