XRP price moved sideways on Wednesday after the developers activated the Permissioned decentralized exchange feature.
Summary
- XRP price wavered on Wednesday after the developers activated the Permissioned DEX feature.
- The launch came after the recent activation of Permissioned Domains.
- It has formed a gravestone doji candlestick pattern pointing to more downside.
Ripple (XRP) token traded at $1.4860, within the range it has held over the past few days. This price is much lower than the year-to-date high of $2.4160.
Ripple reached a major milestone today by activating the Permissioned DEX feature, a unique solution for companies in the financial services industry.
Unlike the popular DEX platforms such as Uniswap and Raydium, the Permissioned DEX allows institutions to participate in these ecosystems in a controlled way. In this, only restricted entities will be able to participate, a move intended to promote institutional compliance requirements.
The solution will have several use cases, including institutional trading, cross-border payments, and forex settlements. It will allow these institutions to trade assets, including XRP and Ripple USD, without exposing them to unvetted counterparties.
The permissioned DEX feature was activated a few days after the developers launched permissioned domains and token credentials. Permissioned domains serve as an on-ledger allowlist that controls who can participate in the XRP Ledger network. They are the core gating mechanism for the DEX feature.
All these features will help to provide the XRP token with more utility and increase its token burn.
All this is happening at a time when Ripple has increased its compliance measures, which will help it to create more partnerships with institutions. It has acquired a provisional banking charter in the United States and received several licenses, including in the UK and the European Union.
XRP price technical analysis
The daily chart shows that the XRP token has remained in a tight range in the past few days, mirroring the ongoing consolidation in the crypto industry.
It formed a gravestone doji candlestick pattern on Sunday. This candle is characterized by a long upper shadow and a small body and is a common bearish reversal sign.
The coin has remained below the 50-day and 100-day Exponential Moving Averages. It has also dropped below the Ichimoku cloud indicator and the key resistance level at $1.7873, its lowest level in November and December last year.
Therefore, the most likely XRP forecast is bearish, with the initial target being the year-to-date low of $1.1215. A move below that level will signal further downside, potentially to the psychological level at $1.
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