Ripple will launch an XRP ledger side chain, which is currently running on a testnet. It will be launched for the public in phase two around the first quarter of 2023. This side chain will be compatible with the Ethereum Virtual Machine that helps the developers to take the benefits of EVM-supported side chains, and they can transfer assets between the XRP ledger and other ETH side chains.
Now users can take the benefits of leading Web3 wallets like MetaMask and XUMM Wallet. This EVM-supported sidechain can process more than 1000 transactions per second, which is far better than many other blockchain technologies.
Besides that, the long-drawn battle between Security Exchange Council (SEC) and Ripple authority will be resolved soon, and the decision might favor Ripple. Hence, the community sentiment is bullish at this time.
The lawsuit case will be presented in front of the judges this year, but the judges will announce the decision around the first half of the next year. There is speculation that it might favor the Ripple community, but all these are speculations.
Besides that, Ripple authority also piloted a project with Central Bank Digital Currency last year so that they will focus on this space. For this, they have partnered with the Royal Monetary Authority of Bhutan to launch digital currencies.
All this positive news are the ammo for a long bull run in the next few years, so it could be a good time to invest in XRP. Check out our technical analysis before investing.
On the daily chart, XRP/USD has broken the resistance of $0.4 with a good volume and is now trading around $0.46. We can find short-term support for around $0.45. Though it turns bearish, we think it will not break the support. However, if it breaks, the previous resistance will work as the next support on this chart. Candlesticks are forming around the baseline of the Bollinger Bands, and MACD is bearish. You can trade for the short term with a strict stop loss of $0.44.
We can find two weekly red candles on this chart that suggests a trend reversal, but most technical indicators are bullish, and candlesticks are forming in the upper Bollinger Bands. We think it is time to book short-term profit, but you should not invest for the long term at this time. You can wait until it comes to the level of $0.4. That could be the ideal time to accumulate the coin in the long term.