Is Ripple Letting Developers Down? XRP Price Eyes 15% Crash

The Ripple native token, $XRP, has not been performing well in price, and inventors are beginning to worry if the drop will continue. The drop in the $XRP price is due to internal and external factors. First, the crypto market is not performing well, and second, there is a big disagreement within the Ripple community.

What is Happening to the XRP Price?

XRP started bleeding in price immediately after Bitcoin price fell below $57,000. In the crypto market, Bitcoin price movement often affects the direction of other cryptocurrencies. Its recent impact on $XRP is very severe, as the Ripples native token price fell below a critical support level.

The Ripple Community Issue 

The Ripple ecosystem is currently undergoing a big disagreement. The argument is all about a “Sidechain” that the main developers on Ripple are planning to launch in 2025. In blockchain, a Sidechain is a smaller connected version of a mainchain. A Sidechain works alongside the main blockchain, and it can be built with special features or created to try new ideas. The primary purpose of a sidechain is to help the main blockchain scale.

In the XRP case, there has been ongoing development of a sidechain on the XRP Ledger mainchain called “Xahau.” The XRP Sidechain has a feature called “Hook,” similar to the function of smart contracts in Ethereum. Smart contracts are programs on a blockchain with the capabilities to execute actions when predefined conditions are met.

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

The Xahau developers express their displeasure over the move from Ripple, according to their lead developer, Wietse Wind. He feels the new Ripples’ sidechain is a replica of Xahau. In his open letter to the Ripple community on X, Wind believes Xahau is not just an idea but a real blockchain solution. 

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

https://t.co/hPXQaJzOeN

— WietseWind (🪝🛠 Xaman @XRPLLabs) (@WietseWind) September 3, 2024

What’s Happening to The Price of $XRP Now

With the current conflict within the Ripple ecosystem and the overall bearish mood in the crypto market, the $XRP price has dropped in value by more than 3% in the past 24 hrs, and the token is currently trading at $0.5490.

Also, with the data coming from Coinglass, Traders are trading more short than long on $XRP. This means many crypto traders are speculating a bearish price movement for the token.

Can $XRP Price Drop Further?

Looking at the current $XRP price chart, we can see its market value is bearish. Using the MACD and RSI technical indicators to draw a support and resistance analysis, if $XRP goes below the $0.5386 support level, we might experience close to a 15% drop in price.

However, if $XRP changes direction and moves above the current resistance level of $0,568 is achieved. The Ripple native token might rise to $0.62 or more.

Source: TradingView

XRP Faces Bearish Pressure Amid Market Uncertainty

$XRP is currently going through a rough time as the general crypto market condition, and its internal conflict is really affecting its price. Some traders and crypto analysts are speculating a deeper bearish price movement for the token. However, it’s important to DYOR before investing in any crypto project and trade with caution.