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XRP price faces bearish signals while Ripple opens applications for XRPLedger grants program

|ByEkta Mourya

  • XRP price is testing psychologically important support at $0.60 on Wednesday. 
  • Ripple announced the launch of its XRPLedger grants program, inviting applications from developers. 
  • XRPLedger issues final reminder to all node operators to upgrade to 2.1.1 for AMM amendment that goes into effect on Thursday. 

Ripple (XRP) price is testing a crucial support on Wednesday, at $0.60. The altcoin was hit by the market-wide correction as Bitcoin price coiled back under $70,000.

Ripple’s call for applications to the XRPLedger grant program and the XRPLedger upgrade to 2.1.1 are the two key catalysts likely influencing the XRP price on Wednesday. 

Daily digest market movers: XRPLedger prepares for AMM amendment, invites applicants for grants

  • XRPLedger, Ripple’s decentralized public blockchain, has a key Automated Market Maker (AMM) update lined up for Thursday. The blockchain network called all nodes to upgrade to version 2.1.1 for the update to go into effect. 
  • Ripple has called developers to apply to its XRPLedger grants program. 
  • XRPL Grants help enable developers to leverage the ledger’s open-source technology to innovate and build useful applications on Ripple’s blockchain. 
  • The program offers between $10,000 and $200,000 funding for projects up to one year. 
  • Ripple has introduced rolling applications to enhance flexibility for developers and bring projects with more utility to the XRPLedger. 
  • Previously, grants have been awarded to projects that drive the adoption of the XRPLedger and its native token XRP, like Evernode, which brings Layer 2 smart contracts to the Ledger, and XRPScan, the largest explorer for Ripple. 

Technical analysis: XRP price tests crucial support

XRP price is testing critical support at $0.60. The $0.60 level has been considered psychologically important for Ripple, as it acted as support for several weeks in March. A decline below this level typically signals a correction in XRP price. 

Ripple price is in an ascending channel and a breakout to the downside is likely, with price testing $0.60 support. The next key support level for XRP is $0.5851. The $0.5851 level has been tested several times and emerged as a steady support for XRP throughout April 2024. 

XRP/USDT 4-hour chart 

If the XRP price fails to close below the channel, it could begin its recovery and test resistance at the upper boundary at $0.63. The April 9 peak of $0.6431 would be the target for the XRP price. 

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.

 

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