XRP Price Range Bottom Support Holds, Is It Too Late To Buy XRP?
XRP investors are growing impatient amid the prolonged sideways trading that engulfed the cross-border money remittance token in August. The currently untradeable digital asset holds at $0.5, remaining relatively unchanged over the last 24 hours.
The 50-day Exponential Moving Average (EMA) (red) caps the price at $0.5027, with another seller congestion at $0.505 suggesting that this sideways trading is bound to stay put until XRP encounters a market-moving event like the upcoming update on the XRP Ledger.
XRP Developers Announce Protocol Upgrade
The developers of crypto’s most prominent international money remittance token are working on the XRP Ledger’s next update to usher in two new features. According to a post on X (formerly Twitter), the update 1.12.0 merges the XLS-30 Automated Market Maker (AMM) and the XLS-39 Clawback spec to the protocol.
Introduced by Ripple’s CTO David Schwartz and Aanchal Malhotra, RippleX’s Head of Research, the proposal now dubbed XLS-30 “in a way provides increased returns to those who provide liquidity for the AMM and minimizes the risk of losses due to volatility.”
“XLS-30 will bring a native Automated Market Maker to the XRPL that integrates with the existing order book DEX to enable trading of digital assets in automated liquidity pools and enable developers to address a wider audience of DeFi stakeholders,” the statement reads in part.
The Clawback feature, on the other hand, refers to a “lightweight addition to the rippled 1.12.0 codebase,” where newly issued assets can be clawed back via the trustline.
3/ XLS- 39 will enable the Clawback feature, a new, lightweight addition to the rippled 1.12.0 codebase. If adopted to the #XRPL Mainnet, Clawback will provide an opt-in capability for newly issued assets to be “clawed back” via a trustline.
— RippleX (@RippleXDev) September 6, 2023
XRP Price Bulls Ready To Defend Key Support
XRP’s range support at $0.5 must hold for bulls to push for a trend reversal and is of great importance now that the Bollinger bands indicator is squeezing in the wake of the sell-off at the end of August.
An immediate recovery is likely, especially with the XRP price testing the lower boundary of the Bollinger bands. The price tends to roll back to the middle of the indicator, implying that bulls are ready to take control.
The stability around $0.5 means that investors are holding their existing positions while considering adding more if they get a bullish signal. For instance, a break above the 50-day EMA (red) and subsequently the resistance at $0.505 would trigger an influx of funds, allowing the On-Balance-Volume (OBV) to ascend toward the overbought region from recently near oversold conditions.
In that case, the path with the least resistance would be to the upside as XRP price reaches out for 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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