- The downward trend in XRP continues, signaling a potential drop below $2.00 after failed attempts at recovery.
- Ripple partners with Wormhole to enhance multi-chain interoperability in the XRL Ledger.
- This integration aims to promote the use of stablecoins and tokenized assets by improving cross-chain messaging, forwarding, and issuance.
Ripple (XRP) has seen losses for three consecutive days, recently hovering around $2.23, stalling under resistance levels. Key technical indicators suggest a strong bearish trend, with XRP’s price falling to about $2.08 on Friday. The overall cryptocurrency market sentiment appears to be subdued, with many altcoins retracting earlier gains.
Ripple Pursues Multi-Chain Interoperability with Wormhole Partnership
Ripple is collaborating with Wormhole, an important protocol for cross-chain interoperability, to expedite integration between the XRP Ledger (XRPL) MainNet and the XRPL Ethereum Virtual Machine (EVM) Sidechain.
As interest in stablecoins and tokenized assets rises, Ripple sees a compelling need to establish a robust blockchain infrastructure. This system would enable safe and efficient asset transfers for institutions and users, minimizing the risk of fragmentation in liquidity.
Wormhole, which supports over 200 applications across more than 35 blockchain ecosystems, plans to integrate its leading cross-chain technology with the XRPL MainNet and XRPL EVM Sidechain, as announced recently.
This integration allows developers to move supported XRPL assets, including XRP tokens. Developer tools will also facilitate communication with smart contracts across different blockchains through specialized messaging and data triggers.
“If widespread adoption is truly needed, interoperability becomes vital. It’s not just about one chain, but a whole ecosystem. This integration enables tokens initially created on the XRP Ledger to transition between various blockchain networks while retaining their original issuance,” a representative stated.
Technical Outlook: XRP Remains Bearish
XRP is still trending downward around $2.09, showing more susceptibility to upward pressure than over the weekend. A bearish signal from the Moving Average Convergence Divergence (MACD) since Thursday indicates traders may pursue further bearish momentum by decreasing their XRP holdings.
The red histogram below the MACD zero line reinforces this bearish outlook, particularly with XRP extending its 50-day exponential moving average (EMA) at $2.13, 100-day EMA at $2.15, and 200-day EMA at $2.18 as seen on the 4-hour chart.
XRP/USD 4-hour chart
The path of least resistance appears to trend downward, increasing the chances that XRP could dip below the $2.00 support level, especially as the relative strength index (RSI) continues to drop and approach oversold territory.
Key price levels to watch include $1.80 and $1.90, tested on Sunday, as well as $1.81 and $1.61.
However, we shouldn’t overlook what’s indicated on the chart—there could be a bounce off the highlighted support levels. Interestingly, XRP futures are currently maintaining a strong interest, with open interest trending upward towards $4 billion.
