XRP clears key resistance as Ripple announces smart contracts compatible with Ethereum

• Ripple is preparing for Ethereum-compatible smart contracts on the XRP Ledger, which should increase functionality.
• Ripple plans to use the Axelar network for cross-token transfers; Wrapped XRP is the main token on the sidechain.
• XRP tops $0.57 early Tuesday, holding steady above $0.56 at time of writing.

Ripple (XRP), a cross-border payment remittance firm, made several key announcements in Japan and Korea on September 3. One of the key announcements was the plan for an Ethereum compatible sidechain on the XRP Ledger.

XRP erased 0.75% of its value on Tuesday, holding steady above key support at $0.56.

Daily Market Reasons: Ripple Will Get Ethereum Compatible Smart Contracts On Its Chain

• Ripple has shared plans to enhance the functionality of the XRP Ledger by integrating Ethereum-compatible smart contracts through a sidechain.
• The addition would help Ripple expand its on-chain utility beyond basic transactions and include complex applications like decentralized exchanges and token issuance.
• Ripple plans to use the Axelar network, a decentralized interoperability platform to facilitate cross-token transfers with encapsulated XRP (eXRP). eXRP would act as the main token on the sidechain to facilitate interoperability.
• Smart contracts on Ripple will allow developers to issue tokens, process transactions, and support functionality for decentralized exchanges and financial applications from Ledger.

• The firm made other key announcements, a partnership in the AI ​​and metaverse space with Futureverse. The project will assume safe custody of the metaverse assets for Ripple.
• Ripple University’s Blockchain Research Initiative has added Yonsei University in Korea as a new global partner. Ripple’s research program aims to support technical developments in blockchain technology.

Technical Analysis: XRP Could Extend Losses 7%

XRP was trading at $0.5610 at the time of writing. XRP Ledger’s native token could extend losses further and sweep liquidity to $0.5187. The level marks the lower bound of the fair value gap (FVG) between $0.5187 and $0.5767.

The MACD (Moving Average Convergence Divergence) indicator is flashing red histogram bars below the neutral line. The indicator shows that there is an underlying negative momentum in the XRP price trend.

The Relative Strength Index (RSI) reads 46.30 as the indicator climbs towards the neutral level at 50.

XRP/USDT Daily Chart

A daily candlestick close above $0.5767 could invalidate the bearish thesis. Once XRP begins its recovery, the altcoin could try to rise to $0.6217, a key resistance level for Ripple.