XRP Faces Bearish Pressure Amid Market Uncertainty

The Ripple native token, $XRP, has not been performing well in price, and inventors are beginning to worry if the drop will continue.

The native token of Ripple, XRP, has not been faring well in terms of price, leaving investors concerned about whether the decline will continue. Several internal and external factors are impacting the drop in XRP price.

For one, the crypto market is not faring well, and secondly, a major conflict is brewing within the Ripple community.

What is Happening to the XRP Price?

After Bitcoin price fell below $57,000, XRP began bleeding out in price. In the crypto market, the direction of other cryptocurrencies is often influenced by Bitcoin price movement. Its recent impact on XRP is severe, as the native token price of Ripple fell below a critical support level.

The Ripple Community Issue

Currently, the Ripple ecosystem is grappling with a major conflict. The bone of contention is a “Sidechain” that Ripple’s core developers are planning to launch in 2025. In blockchain, a Sidechain is a smaller connected variant of a mainchain. A Sidechain operates parallel to the main blockchain, which can be built with specialized features or created to test new ideas. The main purpose of a sidechain is to help the main blockchain scale.

In the case of XRP, a sidechain has been under development on the XRP Ledger mainchain, known as “Xahau.” The XRP Sidechain has a feature called “Hook,” which is similar to the function of smart contracts in Ethereum. Smart contracts are programs on a blockchain that can execute actions when predefined conditions are met.

The new sidechain may be equipped with a feature similar to “Hook” on Xahua. The similarities in the functionality of Ripple’s new sidechain appear to pose a threat to Xahau.

According to their lead developer, Wietse Wind, the Xahau developers are expressing their discontent with Ripple’s move. He feels that the new Ripples’ sidechain is a copy of Xahau. In his open letter to the Ripple community on X, Wind maintains that Xahau is not just an idea but a realized blockchain solution.

In response, David Schwartz, CTO of Ripple, stated that Ripple has always been in communication with the Xahau team, and they’ve always supported their idea.

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Current State of Affairs with the Price of XRP

With the ongoing conflict within the Ripple ecosystem and the overall bearish sentiment in the crypto market, XRP price has seen a decline of over 3% in the past 24 hrs, with the token currently trading at $0.5490.

Furthermore, according to data from Coinglass, traders are going more short than long on XRP. This indicates that many crypto traders are speculating on a bearish price movement for the token.

Can XRP Price Drop Further?

The current XRP price chart indicates that its market value is bearish. If we apply support and resistance analysis using the MACD and RSI technical indicators, a drop of around 15% may be imminent if XRP falls below the $0.5386 support level.

However, if XRP manages to change course and break through the current resistance level of $0,568 is achieved. The native token of Ripple could then rally up to $0.62 or more.

XRP faces bearish pressure amid market uncertainty

As it stands, XRP is facing difficulties due to the market condition and internal conflict, which is impacting its price. Some traders and crypto analysts are speculating on a deeper bearish price movement for the token. However, it’s crucial to conduct your own research before investing in any crypto project and trade with caution.