XRP recovers from weekend massive decline after developers propose native lending on XRP Ledger
|- XRP climbed back above $0.50 support after sweeping an eleven-month low of $0.41 over the weekend.
- Ripple developers propose the creation of an on-chain lending protocol to bolster the XRP Ledger’s DeFi capabilities.
- Developers introduced a native lending Protocol proposal to power borrowing and lending of digital assets.
Ripple (XRP) surged past $0.50 on Monday, recovering from an eleven-month low of $0.4188 reached on Saturday after XRP Ledger developers proposed a native lending protocol to help Ripple establish a foothold in DeFi, lending and borrowing for users.
Daily digest market movers: XRP Ledger could support native lending protocol soon
- XRP Ledger developers Aanchal Malhotre and Vito Tumas proposed on Saturday a native lending protocol on Ripple’s blockchain. The proposal intends to expand Ripple’s DeFi capabilities as it would allow users to lend and borrow digital assets directly from the XRP Ledger.
- If the proposal is passed and the lending protocol goes live, it would promote financial inclusion, transparency, and efficiency on Ripple’s native blockchain, Ripple said. Developers are yet to announce a timeline for the proposal’s implementation.
1/ Today, devs @aanchalmalhotre and Vito Tumas introduced a proposal for a Native Lending Protocol on the XRP Ledger that would further expand its DeFi capabilities. Let's break down what this means for the ecosystem
— RippleX (@RippleXDev) April 12, 2024
1/ Today, devs @aanchalmalhotre and Vito Tumas introduced a proposal for a Native Lending Protocol on the XRP Ledger that would further expand its DeFi capabilities. Let's break down what this means for the ecosystem
— RippleX (@RippleXDev) April 12, 2024
- The proposal focuses on three specifications: XLS-64d (Pseudo-account to track balances and issue tokens), XLS-65d (Single Asset Tokenized Pool) and XLS-66d (SNative XRPLedger Lending Protocol, provide liquidity for assets).
- Liquidity providers will deposit tokens like XRP, wrapped Bitcoin (wBTC) and wrapped Ethereum (wETH) into a lending pool and earn interest. Pool delegates will manage these pools, attract capital and provide loans. Borrowers and pool delegates will agree on loan terms off-chain and record them.
- The protocol will enable fixed-term loans and pre-set terms for interest accrual. This bypasses the need for off-chain underwriting, risk management and first-loss capital protection scheme in case of default, Ripple said.
- XRP Ledger could attract developers to build and integrate lending Decentralized Applications (DApps) on the blockchain and address a wide range of use cases.
Technical analysis: XRP climbs above $0.50 after liquidity sweep at $0.41
XRP price has made a comeback above $0.50 on Monday after sweeping the $0.4188 lows for the first time since May. The decline to $0.4188 over the weekend represents an eleven-month low for the altcoin.
The $0.50 round level represents key support for XRP as the altcoin has broadly sustained above this threshold since February. XRP price could find support at $0.4117 in the event of decline and faces resistance at $0.5310 (the 50% Fibonacci retracement of the altcoin’s drop from the April 9 peak of $0.6431).
The Relative Strength Index (RSI) recovered from its decline below 30 (the oversold region) and climbed to 34.13 on Monday. Still, the RSI continues to signal little momentum. The red bars below the neutral line on the Moving Average Convergence Divergence (MACD) indicator suggest XRP price is likely to observe further correction.
XRP/USDT 1-day chart
If XRP price sees a daily candlestick close above the $0.50 level, it could invalidate the bearish thesis and see the altcoin rally towards the April 9 local top at $0.6431. XRP price faces resistance at $0.5623, a level that held steady as support throughout March 2024.
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