XRP Surges Beyond Crucial Barrier Following Ripple’s Introduction of Ethereum-Compatible Smart Contracts
Ripple, a company specializing in cross-border payment remittance services, recently unveiled significant developments during events in Japan and Korea on September 3. Among the notable announcements was the introduction of plans for an Ethereum-compatible sidechain on the XRP Ledger.
This strategic move by Ripple aims to enhance the functionality of the XRP Ledger by integrating Ethereum-compatible smart contracts through the sidechain. The incorporation of these smart contracts is expected to expand the utility of Ripple’s chain beyond basic transactions, enabling the support of complex applications such as decentralized exchanges and token issuance.
To facilitate cross-chain token transfers, Ripple intends to leverage the Axelar network, a decentralized interoperability platform. Wrapped XRP (eXRP) will serve as the primary token on the sidechain, enhancing interoperability within the network.
Moreover, the implementation of smart contracts on Ripple’s platform will empower developers to issue tokens, conduct trades, and enable functionalities for decentralized exchanges and financial applications on the Ledger.
In addition to these advancements, Ripple also announced a partnership in the AI and metaverse sector with Futureverse. This collaboration involves the secure management of metaverse-related assets for Ripple. Furthermore, Ripple’s University Blockchain Research Initiative expanded its global reach by welcoming Korea’s Yonsei University as a new partner. This initiative underscores Ripple’s commitment to supporting technical advancements in blockchain technology.
From a market perspective, XRP experienced a slight decline in value on Tuesday, hovering above the crucial support level at $0.56. Technical analysis suggests that XRP could potentially extend its losses by 7%, with a possible drop to $0.5187. The Moving Average Convergence Divergence (MACD) indicator indicates negative momentum in XRP’s price trend, while the Relative Strength Index (RSI) stands at 46.30, approaching the neutral level at 50.
A daily candlestick close above $0.5767 could invalidate the bearish outlook for XRP, potentially paving the way for a recovery towards the key resistance level at $0.6217.
In conclusion, Ripple’s recent initiatives signal a proactive approach towards enhancing the functionality and versatility of its platform, positioning itself to cater to a broader range of applications and partnerships within the evolving crypto landscape.
