XRP price analysis as Ripple activates permissioned DEX

$XRP price moved sideways on Wednesday after the developers activated the Permissioned decentralized exchange feature.

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

$XRP price chart |Source: crypto.news

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.