After hitting a nearly eleven-month low of $0.4188 over the weekend, XRP price has surged back above the $0.50 support level. This recovery comes as developers propose a Native Lending Protocol on the XRPLedger, aiming to enhance Ripple’s presence in DeFi.
Developers Propose Native Lending Protocol
XRPLedger developers Aanchal Malhotre and Vito Tumas have introduced a proposal for a Native Lending Protocol, which would enable lending and borrowing of digital assets directly on the XRPLedger 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
This initiative seeks to expand Ripple’s DeFi capabilities and promote financial inclusion, transparency, and efficiency.
Related article: Deciphering XRP’s Future: Analyst’s Bold Projection to $288
The proposed Native Lending Protocol focuses on three key specifications: XLS-64d, XLS-65d, and XLS-66d. These specifications aim to facilitate liquidity provision, tokenized pool management, and lending protocol implementation on the XRPLedger. Liquidity providers would deposit assets like XRP, wrapped Bitcoin (wBTC), and wrapped Ethereum (wETH) into lending pools to earn interest.
Related article: Analyzing XRP: Potential for a 5x Price Increase
Technical Analysis Highlights
XRP price has bounced back above $0.50, a crucial support level held since February 2024. Resistance is seen at $0.5310, the 50% Fibonacci retracement level, while support lies at $0.4117. The Relative Strength Index (RSI) has climbed to 34.13, indicating a potential reversal from oversold conditions.
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However, the Moving Average Convergence Divergence (MACD) suggests further correction may be in store. If XRP price manages to close above $0.50, it could invalidate the bearish scenario and pave the way for a rally towards the April 9 peak at $0.6431.
XRP/USDT 1-day chart
Resistance at $0.5623, previously a support level, may play a crucial role in price movements. Additionally, the introduction of the Native Lending Protocol could attract developers to build decentralized applications (DApps) on the XRPLedger, expanding its utility and use cases.