XRP Price Consolidates as Ripple Pushes New Developments
XRP has been in a consolidation phase for 49 days, marked by a notable buy-side liquidity hunt in early August. The cryptocurrency saw a significant 31% surge following the announcement of a $125 million settlement with the SEC, but the price soon began to retrace. Despite this, Ripple continues to make strides in its expansion efforts, recently showcasing advancements in the XRP Ledger (XRPL) during the Korea Blockchain Week 2024 (KBW).
Could New Programmability Features Fuel XRP’s Growth?
Ripple CEO Brad Garlinghouse has disclosed that the company is working on enhancing the XRPL with new programmability features. This upgrade is set to integrate smart contracts into the blockchain, paving the way for innovations like NFTs, Automated Market Makers (AMMs), and decentralized exchanges (DEXs) within the network.
As part of this initiative, Ripple has partnered with Futureverse, an AI and Metaverse technology firm, to ensure the secure storage of its assets.
Additionally, Ripple announced the development of an XRPL Ethereum Virtual Machine (EVM) sidechain called the Root Network, expected to be operational by 2025. The new programmability features will be implemented on this chain. Notably, Futureverse has already adopted the XRPL NFT standard on the Root Network, which utilizes XRP as gas.
These advancements could significantly boost XRP’s price by increasing demand for the coin. Over the past 24 hours, XRP has seen a 3% increase, currently trading at $0.5659.
Ripple Price Analysis: Focus on the $0.64 Resistance Level
The ongoing developments and strategic partnerships have had a mixed impact on XRP’s price. On September 1, XRP was trading around $0.55, a decline from the previous month.
The initial surge in XRP’s price following the Ripple-SEC settlement led many in the community to anticipate a new all-time high. However, the price began to retrace, dropping 11.19% from $0.64 to its current level of $0.56.
In early August, market makers targeted demand-side liquidity within the current range. Typically, liquidity runs on both sides of a range precede a decisive price move. Currently, 38 days’ worth of liquidity is sitting around the $0.64 supply zone.
The introduction of new programmability features and the expansion of Ripple Custody could foster positive sentiment and drive XRP’s price higher in the long term. However, the market remains cautious, as XRP is currently facing resistance in a zone that has been challenging to breach in the past.
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