Ripple price coils up for a dump as network offloads massive XRP reserve

Ripple (XRP) could suffer the damages of increased supply soon, after the network offloaded millions of XRP tokens taken out of the reserve. Meanwhile, validators on the network are looking to show support for the recent network update, in a move meant to eliminate challenges faced in the past. 

Also Read: Ripple developer proposes change in XRP Ledger governance to increase transparency

Ripple dumps millions of XRP tokens to the network's supply

Ripple (XRP) price is  suffering the weight of 46 million XRP tokens flooding the market. These tokens were part of the ecosystem’s reserve and were valued at $24.74 million as of the time of the unlock, channeled toward an undisclosed wallet. According to data by Bithomb, Ripple now holds only 270 XRP tokens, worth around $147, but reserves potentially add to their holdings. 

Elsewhere, after Ripple developers proposed adjustments to the XRP Ledger governance for purposes of enhancing transparency, several validators have demonstrated a strong intention to endorse XRP Ledger AMM. It comes after Ripple’s announcement on GitHub revealing plans to launch the Rippled version 2.0.1. The update is already completed with XRPScan now upscaled to Rippled v2.0.1.

The validators now plan to monitor it and vote in support of the XLS-30 amendment if it proves to run smoothly. The amendment is geared toward resolving various issues and bugs discovered in previous versions.

For the AMM feature to be implemented, it must secure upward of 80% of endorsements. It has reached 68.57% support, data from XRP explorer XRPscan shows.

Ripple price eyes a 5% fall with abounding overhead pressure

Meanwhile, the Ripple price continues to consolidate below $0.5447, trading horizontally with the Relative Strength Index (RSI) signaling falling momentum. The Awesome Oscillator (AO) is in negative territory, while the Moving Average Convergence Divergence (MACD) moves below its signal line (orange band), which signals that bears have the upper hand.

With such an outlook, the XRP price is likely to fold by 5% to retest the order block extending between $0.4927 and $0.5111. A break and close below its midline at $0.5030 could see Ripple extend the dump to the $0.4746 support floor, 10% below current levels.

XRP/USDT 1-day chart

Conversely, if the bulls show fortitude, XRP price could push north to overcome resistance at $0.5442. However, for the bearish thesis to be invalidated, it must record a candlestick close above the $0.6000 psychological level, 12% above current levels.