XRP investors are growing impatient with the sustained sideways trading that gripped the cross-border money transfer token in August. The currently untradable digital asset sits at $0.5 and has remained relatively flat over the past 24 hours.
The 50-day exponential moving average (EMA) (red) caps the price at $0.5027, with another seller jam at $0.505 suggesting that this sideways trade will continue until XRP hits a market-moving one Event like upcoming XRP update bumps ledger.
XRP developers announce protocol upgrade
The developers of the most famous cryptocurrency international money transfer token are working on the next update of the XRP ledger to introduce two new features. According to a post on X (formerly Twitter), update 1.12.0 introduces the XLS-30 Automated Market Maker (AMM) and XLS-39 Clawback specification to the protocol.
Presented by Ripple CTO David Schwartz and RippleX Research Lead Aanchal Malhotra, the proposal, dubbed the XLS-30, “somehow offers higher returns for those providing liquidity to the AMM and minimizes the risk of losses due to Volatility.”
“XLS-30 will bring a native automated market maker to the XRPL that will integrate with the existing DEX order book to enable trading of digital assets in automated liquidity pools and enable developers to target a broader audience of DeFi stakeholders ‘ the statement reads in part.
The clawback feature, on the other hand, refers to a “lightweight addition to the ripped 1.12.0 codebase” where newly issued assets can be reclaimed through the trustline.
XRP price bulls are poised to defend key support
For the bulls to push for a trend reversal, XRP’s range support at $0.5 must remain in place and is of major importance as the Bollinger Band indicator comes under pressure after the late August sell-off.
XRP/USD four hour chart | trading view
An immediate rebound is likely, especially as XRP price tests the lower boundary of the Bollinger Bands. The price tends to return to the middle of the indicator, which suggests that the bulls are ready to take control.
Stability around $0.5 means investors will hold their existing positions and consider adding more if they get a bullish signal. For example, a break above the 50-day EMA (red) and subsequent resistance at $0.505 would trigger an inflow of funds that would allow on-balance volume (OBV) to move into overbought territory from recent near-oversold conditions to rise.
In this case, the path of least resistance to the upside would be when XRP price targets a breakout above the descending trendline, the 100-day EMA (blue) and the range limit at $0.55 – highlighted by the 200-day -EMA (purple).
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John is a renowned crypto analyst and journalist providing expert insight into broad and focused aspects of the digital asset market. A consistent reporter, he keeps his audience updated on the latest news in the crypto space, covering topics such as price trends, on-chain data analysis, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the ever-evolving metaverse.
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