Ripple shrugs off recent losses and rallies 4%, XRP crosses $0.5000 resistance
- Ripple announced its RippleX Bug Bounty Program, inviting security researchers to find potential bugs in its projects.
- Ripple has already awarded over $1 million in bounties and its codebase spans Multi-Purpose Tokens, Oracles, Lending Protocol, DID, among others.
- XRP is likely to sweep liquidity at $0.4700 prior to the altcoin's attempt to break $0.6000 resistance.
Ripple (XRP) suffered a steep correction in the crypto market carnage on Monday. XRP slipped to a $0.4300 low, its lowest level since mid-July, on August 5.
But the altcoin has rallied 4% on Tuesday, erasing recent losses. However, technical indicators suggest XRP could revisit the $0.4700 support level prior to its recovery. XRP could then rally to its $0.6000 psychological resistance level following the liquidity sweep.
In other news, Ripple made an important announcement for security researchers on Tuesday.
Daily Digest Market Movers: Ripple announces Bug Bounty program post massive sell-off
- Bloody Monday, what the analysts like to call August 5, brought a steep correction in XRP price. The native token of the XRPLedger slipped to its monthly low of $0.43, alongside a massive decline in Bitcoin and top 30 cryptocurrencies.
- Ripple announced a reward program for security researchers as part of its RippleX Bug Bounty Program, early on Tuesday.
- The payment remittance firm called researchers to identify potential vulnerabilities in its code base. This includes XRP Ledger’s Multi-Purpose Tokens, Oracles, Lending Protocol, DID, among other projects.
️Calling all security researchers ️
— RippleX (@RippleXDev) August 6, 2024
Help keep the #XRPLedger safe, secure and reliable by identifying potential vulnerabilities in the blockchain codebase, and earn rewards for your efforts through the RippleX Bug Bounty Program.https://t.co/02lgnOoM0u
- Ripple notes that the firm has already awarded over $1 million in bounties to researchers recently.
- The firm announced a Bug Bounty Live Hack event, a 48-hour challenge to identify potential vulnerabilities, workshops and collaborations for security researchers.
Technical analysis: Ripple could sweep liquidity at $0.47 post recovery
XRP/USDT daily chart shows the likelihood of a liquidity sweep to support at $0.4700, prior to a recovery in Ripple price. The altcoin could extend losses by 7% and sweep $0.4700 level, the upper boundary of an imbalance zone, seen in the chart below.
Ripple’s target is the psychological resistance at $0.6000, and the altcoin could break into a rally following the liquidity sweep. XRP could face resistance at the Fair Value Gap (FVG) between $0.5188 and $0.5406.
The Moving Average Convergence Divergence (MACD) indicator supports the thesis of a decline in the asset, signaling a negative underlying momentum in the XRP price trend.
XRP/USDT daily chart
A daily candlestick close above $0.5500 could invalidate the bearish thesis and XRP could rally to its $0.6000 target.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
