Ripple Hoping XRP Ledger Developments Might Mitigate 50% Downside Risks

NOIDA (CoinChapter.com)—Ripple has been busy making new partnerships even as the company’s legal feud with the US Securities and Exchange Commission continues. Yet, the platform’s native token does not seem to share its optimistic outlook, even as the XRP Ledger ecosystem records new developments.

One of the firms joining the Ripple bandwagon is SBI Digital Holdings. The firm has started operations as a validator on the XRP Ledger, a Layer 1 decentralized blockchain. SBI aims to join the Unique Node List (UNL), reflecting its commitment to the development and governance of the XRP blockchain.

Latest Developments in the XRP Ledger Ecosystem

SBI Digital Holdings’s role as a validator involves verifying transactions and voting on protocol amendments, critical for maintaining the XRP ledger’s integrity and functionality.

It seeks to represent the XRP holder community in Japan, incorporating their feedback into the ledger’s governance to enhance community engagement and market presence. Moreover, the firm plans to educate XRP holders about new features and amendments for making informed investment decisions.

Additionally, SBI Holdings, associated with Ripple Labs, has partnered with Chiliz to launch sports fan tokens in Japan, utilizing the XRP Ledger. The initiative aims to tap into the growing market of fan engagement in sports, enabling fans to vote on club decisions and access exclusive offers.

Furthermore, creating the Derec Alliance, with Ripple and XRPL Labs as founding members, would help enhance the crypto sector’s security.

The group focuses on developing interoperable recovery standards for digital assets. Moreover, the alliance aims to promote broader blockchain adoption.

Though the XRP Ledger developments could act as bullish cues, Ripple’s XRP token faces downside risks from a bearish technical setup

XRP Price Forms Bearish Pattern

The Ripple token has formed a bearish technical pattern called the ‘descending triangle.‘

Market analysts predominantly consider the descending triangle a bearish continuation signal. Moreover, the pattern features a downward-sloping upper trendline and declining resistance levels that progressively lower the price action’s peaks.

Additionally, a horizontal lower trendline acts as support, maintaining a consistent low point that the price struggles to breach. The formation indicates that selling pressure is gradually increasing. Therefore, bearish pressure could overcome buying interest, as each rally is weaker than the last.

The height of the triangle’s thickest section determines the price target in a descending triangle setup. Hence, if the bearish pattern pans out, XRP price could drop nearly 50% to reach the pattern’s projected price target near $0.25.

Currently, the Ripple token is crabbing near the $0.5 price level.

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