Why Is XRP Price Pumping Today?

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As a seasoned crypto investor with over a decade of experience navigating the tumultuous seas of digital currencies, I find myself intrigued by the recent developments surrounding XRP. The 49-day consolidation period has been a rollercoaster ride, with the sudden surge following the SEC lawsuit settlement and subsequent retracement reminding me of the unpredictable nature of this market.

1. The price of XRP has been consolidating for 49 consecutive days, with a significant buy-side liquidity event happening approximately around the start of August. Following news of a $125 million lawsuit settlement with the SEC, XRP surged by 31%. However, the price subsequently started to drop. Despite this retracement, Ripple is still actively progressing and expanding, participating in the Korea Blockchain Week 2024 (KBW) to demonstrate recent advancements in the XRP Ledger (XRPL).

New Programmability to Boost XRP Price?

Brad Garlinghouse, CEO of Ripple, announced that their FinTech firm is planning to add a programmability feature to the XRPL. This development will incorporate smart contracts into the blockchain, enabling capabilities like Non-Fungible Tokens (NFTs), Automated Market Makers, and Decentralized Exchanges (DEXs) on the platform.

With advancements in customizability coming soon for the XRP Ledger, a development long requested by the XRP community, and an expanding market for Ripple’s business solutions to cater to crypto-native clients like @futureverse utilizing Ripple Custody – the groundwork for cryptocurrencies is solidifying.
— Brad Garlinghouse (@bgarlinghouse) September 3, 2024

For this purpose, Ripple has decided to collaborate with Futureverse, a company specialized in Artificial Intelligence (AI) and Metaverse technology, for the safekeeping of its assets.

In simpler terms, Ripple has unveiled plans to establish a side chain for the XRP Ledger (XRPL), known as the Root Network, which they aim to complete by 2025. This network will provide the functionality for the upcoming programmable features.

As reported by Business Wire, Futureverse has integrated the XRPL NFT standard onto the Root Network, a system that leverages XRP as its energy source for transactions.

As a seasoned crypto investor with years of experience under my belt, I can confidently say that this recent development could prove to be a game-changer for XRP prices. With its potential to significantly boost demand for the coin, it’s not hard to imagine the positive impact it could have on its value. In fact, over the past 24 hours alone, I’ve seen the price of XRP climb by 3%, reaching $0.5659. This growth is a testament to the potential of this digital asset and reinforces my belief in its long-term prospects.

Ripple Price Analysis: All Eyes on $0.64

Over recent times, advancements and collaborative agreements have influenced XRP‘s market value in both positive and negative ways. As of September 1st, the XRP price hovered near $0.55 – a decrease compared to the prior month.

Initially, the value of the asset increased following the announcement of the Ripple-SEC lawsuit settlement. Many in the community thought this settlement would push XRP to record highs. However, those hopes were quickly dampened as the XRP price started falling, decreasing by 11.19% from $0.64 to its current value of $0.56.

In the first half of August, market makers experienced a shortage of buying demand or “liquidity crisis” on one side of the current trading range. It’s common for such shortages to happen on both sides before the price settles into a clear direction. As of now, there are approximately 38 days’ worth of liquidity accumulated around the $0.64 supply area.

Why Is XRP Price Pumping Today?

Enhancing programmability options and broadening Ripple Custody could foster optimistic feelings about the asset and potentially lead to increased prices down the line. However, the markets are showing a degree of skepticism as the price of Ripple is currently encountering a resistance zone that has historically been tough to surpass.

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2024-09-03 12:11