Aaryamann Shrivastava
FXStreet
- XRP price slipped nearly 5% on Monday, losing a crucial support line with price indicators nearing a bearish divergence.
- Amid SEC’s ongoing tiff with Ripple, Chief Financial Officer Kristina Campbell resigned this week.
- The altcoin, however, is finding more demand in the derivatives market, with Deribit set to launch XRP options trading.
XRP price on Monday might have corrected some of the gains it noted in the past few days, but Ripple developers are finding success with their AMM (Automated Market Maker) experiment.
Ripple CFO resigns
Ripple recently made some progress for good as it not only partially won the lawsuit the Securities and Exchange Commission (SEC) filed against the company but also won the ruling from Judge Torres, who denied the regulator’s appeal of the initial decision. However, amidst the streak of good news, Ripple witnessed the resignation of its Chief Financial Officer, Kristina Campbell.
Campbell was a part of the company for over two and a half years and was present throughout the SEC lawsuit. The former Ripple executive called it quits this month to join Maven Clinic as its CFO. However, by the looks of it, the exit seemed amicable as Campbell took to LinkedIn to announce her departure, saying,
“A big thank you to everyone at Ripple who made the last few years so memorable.”
Ripple developers to bring AMM on Ledger
Ripple developers, through the RippleX account on X, formerly Twitter, announced that they completed the extensive testing of the XLS-30 AMM. This is a proposed amendment that, if adopted, would bring automated swap, trading, and liquidity provisioning capabilities to XRP Ledger (XRPL).
Back in July, audit firm CertiK completed the audit of XLS-30 with a successful result of no major issues, however, 35 minor issues did come up, which have since been resolved. AMMs are the underlying protocol that power decentralized exchanges (DEX) that have been in demand by Ripple users for a long time now.
4/ To complement a secure codebase, the RippleX team has conducted ongoing performance testing of the core XRP Ledger for over a year. A rigorous methodology has been employed to assess the ledger’s and consensus’s performance and latency to ensure the health of XRPL MainNet.
— RippleX (@RippleXDev) October 6, 2023
XRP price takes a dip
XRP price, trading at $0.501 at the time of writing, registered its biggest single-day drop in the past month. Falling by more than 5.8% during the intra-day trading hours, the altcoin lost the support of the $0.50 mark before recovering slightly, trading at a discount of 3%. The cryptocurrency, however, is still below its month-long uptrend line, as well as the previously tested support floor of $0.505.
XRP/USD 1-day chart
The price indicators are also suggesting a potential bearish momentum building up, with the Relative Strength Index (RSI) slipping below the neutral line at 50.0. The Moving Average Convergence Divergence (MACD) indicator, which measures the change in momentum, is also inching closer to a potential bearish divergence. If the MACD line (blue) crosses below the signal line (red), XRP could see further decline.
XRP price indicators
This could result in XRP price falling to the September low of $0.47, and losing this level would lead to the altcoin dipping to a three-month low.
However, if broader market positive sentiment pushes the altcoin back up, XRP price could manage to maintain $0.505 as a support level. This is crucial in restarting the recovery rally to flip the uptrend line into support from resistance in order to invalidate the bearish thesis and breach $0.54.
Read more - XRP rally likely as Bank of International Settlement adds Ripple to its interoperability task force
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