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- XRP price climbed back above $0.50 support after sweeping eleven-month low of $0.41 over the weekend.
- Ripple is keen on bolstering the XRPLedger’s DeFi capabilities with an on-chain lending protocol.
- Developers introduced a Native Lending Protocol proposal to power borrowing, and lending of digital assets for users.
Ripple (XRP) price recovered from weekend low of $0.4188, surged past $0.50 on Monday. XRPLedger developers have proposed a Native Lending Protocol to help Ripple establish a foothold in DeFi, lending and borrowing for users.
Daily digest market movers: XRPLedger could sport a Native Lending Protocol soon
- XRPLedger developers Aanchal Malhotre and Vito Tumas proposed a Native Lending Protocol on the blockchain.
- The proposal intends to expand Ripple’s DeFi capabilities and it would allow users to lend, and borrow digital assets directly from the XRPLedger.
- If the proposal is passed and the lending protocol goes live, it would promote financial inclusion, transparency, and efficiency on Ripple’s native blockchain.
1/ Today, devs @aanchalmalhotre and Vito Tumas introduced a proposal for a Native Lending Protocol on the XRP Ledger that would further expand its DeFi capabilities. Let’s break down what this means for the ecosystem
— RippleX (@RippleXDev) April 12, 2024
- The proposal focuses on three specifications: XLS-64d (Pseudo-account to track balances and issue tokens), XLS-65d (Single Asset Tokenized Pool) and XLS-66d (SNative XRPLedger Lending Protocol, provide liquidity for assets).
- Liquidity providers will deposit tokens like XRP, wrapped Bitcoin (wBTC), wrapped Ethereum (wETH) into a Lending Pool and earn interest.
- Pool Delegates will manage Lending Pools, attract capital and provide loans.
- Borrowers and Pool Delegates will agree on loan terms off-chain and record them, the protocol will enable fixed-term loans and pre-set terms for interest accrual.
- This bypasses the need for off-chain underwriting, risk management and first-loss capital protection scheme in case of default.
- XRPLedger could attract developers to build and integrate lending Decentralized Applications (DApps) on the blockchain and address a wide range of use cases.
Technical analysis: XRP price climbs above $0.50 after liquidity sweep at $0.41
XRP price has made a comeback above $0.50 on Monday, after sweeping the $0.4188 lows for the first time since May 2023. The decline to $0.4188 over the weekend represents an eleven month low for the altcoin.
$0.50 represents key support for XRP, the altcoin has sustained above this level since February 2024. XRP price could find support at $0.4117 in the event of decline, and faces resistance at $0.5310, the 50% Fibonacci retracement of the altcoin’s drop from April 9 peak of $0.6431.
The Relative Strength Index (RSI) has recovered from its decline below 30 (oversold region), and climbed to 34.13 on Monday. The red bars below the neutral line on the Moving Average Convergence Divergence (MACD) indicator suggest XRP price is likely to observe further correction.
XRP/USDT 1-day chart
If XRP price sees a daily candlestick close above the $0.50 level, it could invalidate the bearish thesis and see the altcoin rally towards the April 9 local top at $0.6431. XRP price faces resistance at $0.5623, a level that held steady as support throughout March 2024.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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