XRP is making its way to Solana.. so what does the market await at the critical reversal area?
HEX Trust announced the launch of wXRP, a new wrapped digital currency 'a digital representation of the original asset', at a time when XRP is trading near a very critical price level, according to estimates from many analysts.
Key points:
The XRP currency officially enters the Solana network through the wrapped digital currency wXRP.
The bridge maintains a 1:1 recoverability of XRP, with full access to the decentralized finance (DeFi) ecosystem on Solana.
The price of XRP is currently trading at a critical 'reversal zone,' according to multiple analysts.
Solana announced that the Ripple 'XRP' will enter its network via a new wrapped digital currency - a digital version representing the original currency - named wXRP, with Hex Trust and LayerZero, based in Hong Kong, managing the technical bridge and issuing the token.
wXRP matches the original XRP at a ratio of 1:1, with holders retaining full redemption rights via the XRP Ledger. Solana clarified, in a series of posts on platform X, that XRP has proven its utility over many years and enjoys strong liquidity within the cryptocurrency industry.
The team confirmed that the fast Solana network will support XRP in lending markets, liquidity pools, and decentralized trading platforms from day one.
The announcement also appeared on the main stage of the fifth Solana Breakpoint event, where Luke Gadges, an executive at Ripple, provided a detailed explanation of this step.
Announcement of a new phase for XRP holders
Vibo Norby from the Solana Foundation revealed additional details regarding the new phase for XRP holders, recalling the sharp criticisms he faced from the XRP community last November. He added that after what he described as a 'public learning process that followed', he met with core XRP developers, longtime community members, and employees from Ripple.
Norby clarified that these discussions led him to a deeper understanding of the unique properties of XRP, subsequently announcing that Solana will support a deep liquidity pool for wXRP from day one of its launch.
Through the wrapped token, users will be able to access all the main components of the decentralized finance sector on Solana. They can lend XRP for yields, join liquidity pools with SOL or stablecoins, purchase tokenized assets, and navigate the entire suite of Solana products without the need for centralized trading platforms.
Norby also explained that wXRP remains under self-custody from start to finish, with the ability to convert each unit back to the original XRP at any time desired by the holder.
David Schwartz, the technical director of Ripple, pointed out that having XRP within multiple networks enhances its uses, while the XRPL network continues to serve as a foundational value base. The team confirmed that wXRP will launch with a locked total value exceeding $100 million.
XRP approaching the reversal zone
Analysts on TradingView indicated that XRP is currently trading near a significant price 'reversal zone.' The chart referenced below shows price stability near the lower limit of the technical triangle pattern, opening the door for two potential scenarios, according to analyst melikatrader94.
If the price of XRP breaks the upper line of the triangle, it may push XRP towards the descending trend line, where there is a strong resistance level above $2.3. If the lower level fails to hold, the price might head to re-test the support area close to $1.80.
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