XRP Ledger to support Ethereum smart contracts, XRP eyes 10% gains
- Ripple’s XRP Ledger blockchain can run Ethereum-compatible smart contracts following mainnet launch.
- Ethereum-based dApps and smart contracts can now run on the Ledger and the XRP ecosystem.
- XRP could rally 10% and retest resistance at the May 16 high of $2.4399.
Peersyst Technology, which builds on the XRP Ledger blockchain, made a key announcement on Monday. The developers welcomed Ethereum-based decentralized applications (dApps) and protocols to the XRP Ledger through the launch of a new sidechain.
The mainnet roll-out makes Ethereum-based applications compatible with the XRP Ledger, opening the gates to liquidity and user activity in the XRP ecosystem.
XRP, the native token of the XRP Ledger, could benefit from the development.
XRP Ledger opens doors to Ethereum-based applications
Through an announcement on X, Peersyst ushered in a new era of XRP Ledger’s sidechain applications. The company announced the mainnet launch of an EVM-compatible sidechain on the XRP Ledger, the blockchain used by payment remittance giant Ripple.
Ripple uses the XRP Ledger for cross-border payments, crypto liquidity and central bank digital currency services, among other use cases. The giant’s reliance on the XRP Ledger and its native token, XRP, could boost the adoption and the utility of the token, typically driving price higher in the long term.
XRP could rally nearly 10%
The XRP/USDT daily price chart shows the token gained slightly on Monday. XRP has been in a downward trend and has consolidated under the $2.6549 resistance for nearly three months now. A daily candlestick close above the resistance at the $2.4399 level could likely signal the end of the consolidation.
The $2.4399 resistance coincides with the lower boundary of a Fair Value Gap (FVG) on the daily timeframe.
The two key momentum indicators, the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), support a bullish thesis for XRP. RSI reads 53 and is sloping upward, while the MACD flashes green histogram bars above the neutral line.
XRP/USDT daily price chart | Source: TradingView
Conversely, a daily candlestick close under support at the June 24 low of $2.1316 could invalidate the thesis of gains and push the altcoin to collect liquidity at the $2 level, a psychologically important support level.
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.
