XRP breaks past key resistance, Ripple announces plans for Ethereum-compatible smart contracts
- Ripple gears up for Ethereum-compatible smart contracts on the XRP Ledger, which should boost functionality.
- Ripple plans to use the Axelar network for cross-chain token transfers; wrapped XRP is the primary token on the sidechain.
- XRP crosses $0.57 early on Tuesday, holds steady above $0.56 at the time of writing.
Ripple (XRP), a cross-border payment remittance firm, made several key announcements in Japan and Korea on September 3. One of the key announcements was the plan for an Ethereum-compatible sidechain on the XRP Ledger.
XRP erases 0.75% of value on Tuesday, holding steady above key support at $0.56.
Daily digest market movers: Ripple to welcome Ethereum-compatible smart contracts on its chain
- Ripple shared plans to boost the functionality of the XRP Ledger by integrating Ethereum-compatible smart contracts through a sidechain.
- The addition would help Ripple expand the utility of its chain beyond basic transactions and include complex applications like decentralized exchanges and token issuance.
- Ripple plans to use Axelar network, a decentralized interoperability platform to facilitate cross-chain token transfers with wrapped XRP (eXRP). eXRP would act as the primary token on the sidechain to facilitate interoperability.
- Smart contracts on Ripple will allow developers to issue tokens, process trades and support functionality for decentralized exchanges and financial applications on the Ledger.
2/ Ripple and the broader XRP community are committed to bringing new programmability, including smart contracts, to the XRPL dev ecosystem in 2025 – through the XRPL EVM sidechain (already in the works) as well as exploring native capabilities on XRPL Mainnet.…
— Ripple (@Ripple) September 3, 2024
- The firm made other key announcements, a partnership in the AI and metaverse space, with Futureverse. The project will assume safe custody of metaverse-related assets for Ripple.
- Ripple’s University Blockchain Research Initiative added Korea’s Yonsei University as a new global partner. Ripple’s research program is aimed at supporting technical developments in blockchain technology.
Technical analysis: XRP could extend losses by 7%
XRP trades at $0.5610 at the time of writing. The native token of the XRP Ledger could extend losses further and sweep liquidity at $0.5187. The level marks the lower boundary of the Fair Value Gap (FVG) between $0.5187 and $0.5767.
The Moving Average Convergence Divergence (MACD) indicator flashes red histogram bars under the neutral line. The indicator shows there is underlying negative momentum in XRP price trend.
Relative Strength Index (RSI) reads 46.30 as the indicator climbs toward neutral level at 50.
XRP/USDT daily chart
A daily candlestick close above $0.5767 could invalidate the bearish thesis. Once XRP begins its recovery, the altcoin could attempt to rally to $0.6217, a key resistance level for Ripple.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
