Ripple price coils up for a dump as network offloads massive XRP reserve
- Ripple price recovery rally is under threat as it faces growing overhead pressure from multiple blockades.
- XRP could face a 5% rejection to revisit January lows within the FVG.
- A daily candlestick close above $0.6000 would invalidate the bearish thesis.
Ripple (XRP) could suffer the damages of increased supply soon, after the network offloaded millions of XRP tokens taken out of the reserve. Meanwhile, validators on the network are looking to show support for the recent network update, in a move meant to eliminate challenges faced in the past.
Also Read: Ripple developer proposes change in XRP Ledger governance to increase transparency
Ripple dumps millions of XRP tokens to the network's supply
Ripple (XRP) price is suffering the weight of 46 million XRP tokens flooding the market. These tokens were part of the ecosystem’s reserve and were valued at $24.74 million as of the time of the unlock, channeled toward an undisclosed wallet. According to data by Bithomb, Ripple now holds only 270 XRP tokens, worth around $147, but reserves potentially add to their holdings.
XRP Update: Whats happening over at @Ripple?
— MartyParty (@martypartymusic) January 30, 2024
Ripple has offloaded another 46.34 million $XRP, valued at $24.74 million. @Ripple currently holds an extremely small XRP reserve now. Ripple currently holds just 270 $XRP tokens equivalent to $147 .
However, there are strong…
Elsewhere, after Ripple developers proposed adjustments to the XRP Ledger governance for purposes of enhancing transparency, several validators have demonstrated a strong intention to endorse XRP Ledger AMM. It comes after Ripple’s announcement on GitHub revealing plans to launch the Rippled version 2.0.1. The update is already completed with XRPScan now upscaled to Rippled v2.0.1.
xrpscan validatator has been updated to rippled v2.0.1. With this update, we're voting for the following amendments:
— XRPScan (@xrpscan) January 30, 2024
- AMM
- DID
- fixFillOrKill
- fixDisallowIncomingV1
- Base Fee = 200 Drops pic.twitter.com/y80XgX7huP
The validators now plan to monitor it and vote in support of the XLS-30 amendment if it proves to run smoothly. The amendment is geared toward resolving various issues and bugs discovered in previous versions.
Today we will install Rippled 2.0.1 on the @xspectar validator
— DS (@xspectDS) January 30, 2024
After a few days of monitoring we will evaluate and if all fine we will vote Yay on AMM
For the AMM feature to be implemented, it must secure upward of 80% of endorsements. It has reached 68.57% support, data from XRP explorer XRPscan shows.
Ripple price eyes a 5% fall with abounding overhead pressure
Meanwhile, the Ripple price continues to consolidate below $0.5447, trading horizontally with the Relative Strength Index (RSI) signaling falling momentum. The Awesome Oscillator (AO) is in negative territory, while the Moving Average Convergence Divergence (MACD) moves below its signal line (orange band), which signals that bears have the upper hand.
With such an outlook, the XRP price is likely to fold by 5% to retest the order block extending between $0.4927 and $0.5111. A break and close below its midline at $0.5030 could see Ripple extend the dump to the $0.4746 support floor, 10% below current levels.
XRP/USDT 1-day chart
Conversely, if the bulls show fortitude, XRP price could push north to overcome resistance at $0.5442. However, for the bearish thesis to be invalidated, it must record a candlestick close above the $0.6000 psychological level, 12% above current levels.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
