XRP recently announced its up to a minor extent, rising 0.05% to clock in at $1.0483. The cryptocurrency has traded back and forth the same tight price range daily including $1.0323 to $1.0559. This low volatility indicates a classic tug of war between buyers and sellers is happening. Despite the quiet market, a big network update from Ripple CTO David Schwartz has got people’s attention.

Inside the New XRPL Security Solution

David Schwartz recently addressed the security issues of the XRP Ledger (XRPL). He spoke about the dangers of front running and sandwich attacks. These attacks are an example of attackers changing the order of transactions so they benefit from the normal user transactions.

Schwartz said he did not take the threat seriously. However, he still proposed a smart mitigation scheme to protect the network. The main purpose of this upgrade is to enhance the security of transactions and safeguard user payments. Better safety will likely much greater improve developer uptake and investor confidence eventually.

Technical Indicators Scream Caution

While the news from Schwartz is terrific, there’s a very different narrative in the chart. XRP is currently facing heavy selling pressure. The token is trading significantly lower than its major moving averages which traders apply to determine market health.

• The 20-day moving average is $1.1273.
• The 50-day moving average is $1.2467.
• The long-term 200-day moving average is $1.5091.

Because the price is below all three lines, sellers are firmly in control. Popular momentum indicators like RSI and MACD also indicate this bear trend.

What is Next for the XRP Price?

Analysts are forecasting a consolidation area for XRP in the short time frame, with a forecast range of $0.95 to $1.15 for the next five days. The closest price resistance is $1.1514. That can open up a possibility of XRP heading back toward its immediate support floors if it fails to clear the resistance area.

Even though activity on chains and the volume of derivatives trading are on the rise, recent outflows from crypto ETFs are keeping big investors alert. Investors should watch the $1.15 resistance level closely to see if Schwartz’s security fix can finally push XRP out of its current slump.