In the last few weeks, XRP has enjoyed relatively stable price action compared to most other cryptocurrencies on the market.
Around late September, the price of the cryptocurrency shot up by almost 70% over ten days, soaring from $0.32 to $0.55.
However, over the last few weeks, the price action of XRP has remained relatively stagnant and has been trading sideways. It is safe to say that cryptocurrency is currently in consolidation.
Generally, market conditions like these show that the bulls are finally losing strength and seem to be losing their grip on the market.
If the bears do not cause a breakdown of the immediate support level around the $0.458 mark, the bulls may step in and initiate a bounce.
However, a bounce wouldn't be a surefire indicator that the bulls have regained their strength. The proper show of strength from the bulls would be a break above the resistance level of around $0.55.
If one looks at the chart from a different perspective, however, the price action of XRP appears to have formed another interesting pattern.
As illustrated above, XRP appears to have formed a symmetrical triangle pattern in its price chart.
Historically, symmetrical triangles are neither bullish nor bearish patterns. This means that a breakout from its resistance (upward breakout) or a breakdown of its support level (downward breakout) have almost equal chances of happening.
The sideways price action of XRP also confirms this over the last few weeks.
XRP currently trades at around $0.4877. its price action is currently below the 100 and 50 period moving averages on the hourly timeframes.
The RSI signal line is also below the neutral level, showing that the bears may be in control of the market.
Overall, the outlook on XRP appears bearish and may change if the bulls push the price into a bounce from the support around $0.485.
In other news, Ripple Labs has begun the first of their three-phase to introduce an EVM-compatible sidechain to the XRP Ledger Mainnet.
This new venture will allow developers to create and deploy larger smart contracts for the Ethereum Virtual Machine (EVM) on the Ripple Ledger (XRPL).
According to an announcement by Ripple Labs, a blockchain that runs in parallel with the XRPL is now available on Ripple's Devnet, allowing developers to test and push mock deploys of their dApps before they go live on the mainnet.
According to Ripple Labs, the second phase will go live early in 2023 when the EVM sidechain becomes permissionless. The actual deployment of the sidechain is expected to come in q2 of 2023, marking the third phase.
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