NOIDA (CoinChapter.com)— Ripple introduced a new update to the XRP Ledger, focusing on programmability to attract developers and businesses. Although XRP coin prices moved slightly later in the day, it seems the market is yet to factor in the latest Ripple news.
Ripple’s latest update has introduced smart contract functionality on the XRP Ledger (XRPL) and the upcoming Ethereum Virtual Machine (EVM) sidechain.
Schwartz Reassures Community Amid Concerns Over Ethereum Integration
The expansion aims to enhance developers’ network flexibility. However, despite these advancements, broader market hesitation is visible as Ripple navigates evolving liquidity challenges.
Ripple’s Chief Technology Officer David Schwartz stepped in to address rising concerns within the XRP community regarding the company’s decision to support Ethereum. His recent tweets reassured users that Ripple remains committed to the XRP Ledger.
Schwartz emphasized that the Ethereum support is limited to facilitating RLUSD transactions and does not signify a strategic shift away from XRPL. However, community unease persists, particularly about Ripple’s liquidity issues and its $1.4 billion pre-IPO stock buyback timing.
The absence of Hooks, a protocol designed by XRPL Labs for smart contracts, from Ripple’s recent announcement also drew attention. XRPL Labs, which recently promoted the Hooks protocol, expressed disappointment in Ripple’s decision not to prioritize it.
The move fueled concerns about Ripple’s transparency and commitment to community-driven innovation.
Despite Schwartz’s assurance that Ripple will not unilaterally impose changes, some community members, such as Wietse Wind, remain skeptical.
Wind questioned Ripple’s decision to explore Ethereum and called for a more collaborative approach to developing XRPL. A controversy here could be very bad for the XRP token price, which is already facing bearish headwinds.
Bearish Setup Forecast Bearish Times For XRP Coin
The XRP USD pair has formed a bearish technical setup called the ‘descending triangle‘ that could spell trouble for the token.
Analysts identify the descending triangle as a classic bearish continuation pattern. The pattern consists of a descending upper trendline compressing price action into progressively lower highs and a flat lower trendline providing support.
Moreover, the pattern indicates mounting selling pressure, with each rally becoming increasingly feeble and struggling to overcome resistance. Traders often gauge the potential downside by measuring the maximum height of the triangle.
The XRP USD pair is currently trying to needle above the resistance line of this descending triangle, though the trendline has rebuffed XRP’s token’s attempts. However, should XRP confirm this bearish setup, the pair could see a sharp decline of over 57%, targeting levels around $0.24.
A breakdown below this pattern could spell disaster for ADA in the current market climate, potentially triggering significant losses.
If XRP coin fails to rally, bulls may attempt to consolidate above the pattern’s support. However, the broader market sentiment suggests a challenging path ahead unless XRP bulls manage to leverage all the bullish cues that Ripple is trying to accumulate.
