Why Is XRP Price Pumping Today?

XRP price consolidation is still in progress with no signs of a directional bias. There was buy-side liquidity hunt in the beginning of August, after which XRP exploded 31% supported by the news of a $125 million lawsuit settlement with the SEC. Profit-taking and lack of bullish momentum triggered a retracement. Nevertheless, Ripple continues to build and expand, attending the Korea Blockchain Week 2024 (KBW) to showcase recent developments in the XRP Ledger (XRPL).

New Programmability to Boost XRP Price?

Ripple CEO Brad Garlinghouse revealed that the FinTech company is working on introducing a new programmability feature to the XRPL. This upgrade will integrate smart contracts into the blockchain, unlocking new features such as NFTs, Automated Market Makers, and decentralized exchanges (DEXs) on the network.

With new programmability in the works for the XRP Ledger (something the XRP community has rightly been asking for) and the growing opportunity for Ripple’s enterprise products to serve crypto-native customers (such as @futureverse using Ripple Custody) – the foundations of crypto… https://t.co/ZLQXl0BcOD

— Brad Garlinghouse (@bgarlinghouse) September 3, 2024

To that end, Ripple is partnering with AI and Metaverse technology company Futureverse to store its assets securely.

Ripple also revealed that they are building an XRPL EVM side chain called the Root Network that may be ready by 2025. It is on this chain that the new programmability feature will work.

According to Business Wire, Futureverse has already adopted the XRPL NFT standard on the Root Network, which uses XRP as gas.

This could be monumental for the XRP price as it could substantially increase the demand for the coin. The price of XRP has increased by 3% in the last 24 hours to trade at $0.5659.

Ripple Price Analysis: All Eyes on $0.64

The ongoing developments and strategic partnerships have had a mixed impact on XRP price. The price of XRP traded around $0.55 on September 1, a drop from the previous month.

The asset initially surged after the Ripple-SEC lawsuit settlement news. Most of the community expected this settlement to be what sent XRP to all-time highs. However, their expectations were cut short after the XRP price began retracing, dropping 11.19% from $0.64 to its current price of $0.56.

Market makers had a run on liquidity on the demand side of the current range in early August. Typically, liquidity runs occur on both sides of the range before the price can take a definite direction. There are 38 days’ worth of liquidity sitting around the $0.64 supply zone.

Introducing new programmability features and expanding Ripple Custody may drive positive sentiment and higher prices for the asset in the long term. The markets remain cautious as Ripple price is currently in a zone of resistance that has proven difficult to break in the past.

Frequently Asked Questions (FAQs)

XRP is up today due to significant whale accumulation, reducing supply and increasing demand, alongside positive sentiment from Ripple’s legal victories and anticipated technological upgrades to the XRP Ledger

Ripple is working on integrating a new programmability feature into the XRPL. This upgrade will enable smart contracts on the blockchain, facilitating the creation and management of NFTs, Automated Market Makers (AMMs), and decentralized exchanges (DEXs).

While XRP is eyeing a 12% gain to retest the $0.64 level, it currently faces resistance at $0.56. The success of breaking through this resistance could depend on market sentiment, liquidity dynamics, and the adoption of the new XRPL features.