Ripple Rebounds to Seven-Week High Amid Announcement of wXRP

3 November 2021 | Updated: 3 November 2021

Ripple (XRP) appears to have regained a decent level of bullish sentiment following positive developments from the ongoing legal battle with the SEC and Wrapped announcement.

Wrapped recently announced that it would support XRP (wXRP) on the Ethereum blockchain by December. The announcement detailed that the wXRP token will receive backing 1:1 by XRP in the DeFi ecosystem.

Commenting on the latest development, Ripple CTO David Schwartz tweeted that:

“Wrapped XRP is coming to Ethereum! Great news for those that want to access XRP within Ethereum wallets, DeFi, and smart contracts.

It’s a multi-chain, after all.”

Meanwhile, Wrapped XRP will secure some XRP in custody with Hex Trust, a financial institution-grade crypto custody provider. That said, the main difference between XRP and wXRP is that the latter has utility in Smart Contracts.

As more interested individuals allocate more capital, wXRP increases utility and demand in the DeFi ecosystem and would drag the XRP along.

However, some XRP proponents have criticized the new development citing the high transaction fees on the Ethereum network as a problem. Nonetheless, the addition of XRP to the multi-chain network should have a significantly positive effect on XRP’s utility.

A little while after the Wrapped announcement, XRP jumped by over 10% and kickstarted an upward trajectory. Meanwhile, many speculators expect the SEC vs. Ripple Labs lawsuit to come to a close soon.

Key Ripple Levels to Watch — November 3

After a sharp rally to the $1.2350 seven-week top this morning, XRP suffered a bearish blow to the $1.1500 support as bears claim control of the $1.2250 top. This price action comes after a prolonged downward-trending cycle towards the $0.9500 low, followed by consolidation between the $1.1000 – $1.0500 pivot area.

XRPUSD – 4-Hour Chart

With the price currently at $1.1660 area, I expect a retest of the $1.1500 intraday low, followed by a steady bullish continuation towards $1.2000.

Although significantly unlikely at the moment, a fall into the $1.1000 pivot zone could thwart the recently accrued bullish efforts and resume a bearish momentum for the seventh-largest cryptocurrency.

Meanwhile, my resistance levels are $1.2000, $1.2250, and 1.2500, and my support levels are $1.1500, $1.1000, and $1.0500.

Total Market Capitalization: $2.71 trillion

Ripple Market Capitalization: $54.6 billion

Ripple Dominance: 2.01%

Market Rank: #7

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.