XRP has dropped by 0.9% over the past 24 hours. The price decline comes as the global cryptocurrency market continues to consolidate. The global cryptocurrency market cap sits at around $974 billion.
XRP bulls seem to be struggling to take control of XRP’s price despite Ripple’s recent announcement of testing an Ethereum-compatible sidechain for XRP Ledger.
XRP price analysis
At the time of writing, XRP was trading at $0.47 after a less than 1% decline. XRP is also down by 5.4% over the past week. XRP bulls are weakening after a notable rally witnessed earlier this month. XRP has been up by 25% over the past month.
XRP’s bullish sentiment is still far off to be formed, given that it is struggling to break past $0.50. During the past 24 hours, XRP has traded between $0.46 and $0.48, showing mild volatility in the token.
If bears can take control of the price now, XRP could drop lower to test $0.42. Dropping to these lows will invalidate the bullish thesis because it will erase most of the gains made by XRP in recent weeks.
XRP has reported trading volumes of $1.33 billion over the past 24 hours, making it one of the most traded cryptocurrencies in the market. The token has a market cap of $24 billion, ranking as the 6th largest cryptocurrency.
XRP has a Relative Strength Index (RSI) of 57. This RSI level indicates that the sentiment is neutral, and neither the bulls nor bears have control. The direction the price will move towards at this point depends upon the next price levels that will be tested.
The Moving Average Convergence Divergence (MACD) shows that the bulls still have some control. However, the movement of the MACD line points to the weakening of the bullish sentiment, meaning that the price could retrace further.
On the other hand, one factor at play could give the bulls the upper hand as speculative traders rush to buy XRP. Ripple has announced an Ethereum Virtual Machine (EVM) sidechain for XRP Ledger that is now live on devnet.
XRP developers launch an EVM sidechain for XRPL
Engineer Mayukha Vadari said an EVM sidechain for XRPL had been launched on devnet. Ethereum compatibility with Ripple started on September 2021, but it has now been released for widespread testing and development.
In the announcement, Vadari added that the Peersyst blockchain technology company created the sidechain. It will allow developers to bring Solidity smart contracts to Ripple’s ledger.
The initial phase of this launch involves a bridge between EVM chains and the XRP Ledger Devnet to give developers access to the two options. The second phase of the process will launch early next year. It will involve a “permissionless EVM sidechain and bridge with a unique design that connects to the XRPL Devnet to expand participation and test scalability within a controlled environment.”
The third phase of the sidechain’s launch will be its deployment to the mainnet, but the timeframe for this has not been given. The EVM sidechain adopts XRP as its native currency. Therefore, the launch could be seen as an expansion of XRP’s utility, giving bulls the momentum needed to sustain gains.
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