- 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
- 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.
Open Interest, funding rate FAQs
Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.
Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin: Holds $105K mark as MicroStrategy adds 11,000 BTC, Trump pardons Silk Road creator Ulbricht
Bitcoin price trades around $105,000 on Wednesday after rebounding from the $100K support level the previous day. Michael Salyor’s MicroStrategy announced on Tuesday that it has acquired 11,000 BTC worth $1.1 billion, and President Donald Trump pardoned Silk Road creator Ross Ulbricht.
World Liberty Financial adds $47 million of ETH and wBTC each to celebrate Trump’s inauguration
Donald Trump-backed DeFi platform World Liberty Financial (WLFI) added $47 million of wrapped Bitcoin (wBTC) and Ethereum (ETH) each to celebrate Trump’s inauguration as the 47th President of the United States on Monday.
Top 5 made in USA altcoins tackle uncertainty on Trump’s return: XRP, Solana, Cardano, Chainlink, Avalanche
Crypto market capitalization of altcoins developed in the U.S. crossed $544.15 billion on Wednesday, January 22. Among cryptocurrencies trending in the U.S., XRP, Solana, Cardano, Chainlink, and Avalanche have gained in the past 24 hours, per CoinGecko data.
President Donald Trump plans $500 billion in AI infrastructure with OpenAI, SoftBank and Oracle
President Donald Trump announced a “Stargate” project for $500 billion in investment to advance the US AI infrastructure. The project will deploy an initial investment of $100 billion, scaling up to $500 billion, to establish advanced data centers and infrastructure in Texas.
Bitcoin: BTC rallies above $102,000 ahead of Trump’s inauguration
BTC's price continues to trade in the green, trading above $102,000 at the time of writing on Friday after rallying more than 7% this week. Recent US macroeconomic data released this week supported the rise of risky assets like BTC.
Trusted Broker Reviews for Smarter Trading
VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.