XRP (CRYPTO: XRP) is hanging by a thread at critical support as Ripple floats a sweeping staking overhaul that could reshape the entire XRP Ledger.
Ripple Engineers Map Early Staking Concepts
RippleX head of engineering J. Ayo Akinyele published early ideas on Wednesday, outlining how staking could fit into the XRP Ledger's core design.
His proposal focuses on creating a source of staking rewards and a fair way to distribute them. Doing this would require changes to the ledger's core design.
Akinyele said staking could strengthen long-term participation by rewarding users who help maintain the network.
He noted that XRPL currently burns transaction fees to control supply, so adding staking would change one of the ledger's original design choices.
Ripple executives have discussed staking more openly in recent months, while stressing that the feature remains a long-term idea rather than an imminent upgrade.
Schwartz Sees Two Pathways But Warns Of Complexity
Ripple CTO David Schwartz added two high-level models in a separate post.
The first introduces a dual-layer system in which an incentivized "inner" layer of roughly 16 validators advances the ledger, overseen by a broader "outer" layer that manages amendments and fees.
The second concept maintains the current validator structure but redirects fees toward zero-knowledge proof verification instead of burning them.
Schwartz called both models technically viable but said they are not practical in the near term due to engineering risks and design trade-offs.
The ideas come as Ripple continues expanding its ecosystem, including a recent announcement involving Mastercard (NYSE:MA) and Gemini to explore using its dollar-backed RLUSD stablecoin for settlement.
Heavy Outflows Hit XRP As Technical Compression Tightens
XRP Netflows (Source: Coinglass)
XRP is under heavy pressure after traders pulled $181.53 million from exchanges yesterday — the largest single-day outflow of 2025.
Another $59.3 million left early today, signaling that confidence is falling and that larger holders are exiting.
Price has dropped to about $1.90, a level that protected XRP several times this year.
When outflows spike while price sits on support, it often means that support is weakening.
Buyers Struggle To Hold Support
XRP Price Action (Source: TradingView)
XRP has been trading below a falling trendline that started in August, and every bounce has been rejected at the same line near $2.20.
The token also sits under all key moving averages.
The Parabolic SAR continues to print above price, which confirms the trend is still down.
Each rebound has been weaker than the last, creating a simple staircase of lower highs: $2.45 → $2.32 → $2.18 → $1.98.
If XRP fails to hold the $1.85–$1.90 support area, the next major demand zone sits near $1.60.
That region supported two rallies this year, in March and May, making it the next logical spot where buyers may try to step in again.
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