Ripple is moving towards $1.35 support amid the rise of new cryptographic protocols

Ripple is testing key support near $1.35 as market focus shifts more to DeFi platforms such as Mutuum Finance.

Ripple (XRP), the long-time leader in the cross-border payments sector, is currently testing the resolve of its holder base as it slips to a critical psychological floor. The move comes at a time when the broader market is shifting its focus to production digital assets, protocols that provide automated financial services, and verifiable on-chain services.

Ripple

Ripple trades around $1.35 and maintains a market capitalization of around $82.9 billion. The token is currently locked in a narrow range after a period of heavy selling that characterized the previous trading sessions.

While XRP saw a brief recovery to $1.47 last week, it has since entered a broader correction phase. Technical data shows that around 66% of XRP’s trading supply is currently in a state of “unexpected losses”, which has increased the pressure on the weak hand to sell into any small rallies.

Traders are now watching closely to see if the $1.35 support zone can hold. Buyers have stepped in to defend this level several times over the past 48 hours, but a lack of strong institutional follow-through has dampened price action. If a recovery occurs, immediate resistance targets will be set near $1.36 and $1.37, with a “ceiling” more likely to appear at $1.40.

On the downside, a decisive break of $1.34 could open the door to a deeper retracement to $1.30 to $1.32, which served as a foundation earlier in the year. Participation in the derivatives market remains mixed, while Open Interest futures showed a slight increase to $2.35 billion, which remains well below the record 2025 level.

Trends in new cryptographic protocols

The decline of many altcoins has coincided with an increase in interest in new cryptographic protocols. These projects aim to address specific operational needs, such as automated financial processes or informal yield mechanisms. Unlike tokens, which primarily respond to market sentiment, utility protocols are often evaluated based on the functionality and volume of transactions they support.

This trend is reflected in Mutuum Finance (MUTM). When some investors are looking for alternatives to side trading assets like XRP, they are exploring the proven lending platform Mutuum Finance. The project reported raising more than $20.7 million and has a user base of more than 19,000 individual investors. The MUTM token is currently priced at $0.04.

Protocol V1: Lending, Borrowing and mtTokens

Mutuum Finance has already demonstrated its technical capabilities through its V1 Protocol. This release introduces the mtToken system that manages how liquidity providers earn revenue. When a user deposits an asset like ETH, they receive mtTokens (like mtETH) as a digital receipt.

These tokens are yielding, meaning that they collect interest during the protocol. For example, a deposit that earns a 5% annual return (APY) allows the user’s mtETH to eventually pay out more than the original deposit, providing a passive income stream.

On the lending side, the system uses a strict Loan-to-Value (LTV) ratio to ensure the security of the protocol. If a user secures a mortgage with 75% LTV, they can borrow a portion of that value in stablecoins. To track this, the system credits the user’s account with Tokens. These tokens provide a transparent record of the outstanding loan and remain associated with the collateral until the loan is paid. This automated approach is currently being tested by 19,000 project investors to ensure it can handle live market challenges.

Mutuum Finance and Ripple roadmap plans

The long-term prospects of both projects are determined by their upcoming technical milestones. Ripple is focusing on the steady expansion of RLUSD, which recently reached a market cap of $1.56 billion.

Mutuum Finance operates a dual market system to give users more borrowing and lending options. The Peer-to-Contract (P2C) marketplace uses automated pools to offer instant loans, while the Peer-to-Peer (P2P) marketplace allows people to directly negotiate their custom interest rates and terms.

To keep these markets safe and accurate, the protocol uses decentralized aggregators that provide real-time price information for all collateral. The team is also planning a native stablecoin to provide a stable unit of account for large liquidity lines.

To support the economy, the purchase and distribution mechanism uses part of the platform’s fees to buy MUTM tokens and distribute them to users who contribute their assets to the Security Module to protect the network. This ensures that the protocol remains secure while rewarding the community for supporting it.

Ripple (XRP) is navigating key technical support levels around $1.35 while exploring developments such as stablecoin initiatives aimed at maintaining institutional cooperation. At the same time, new crypto protocols reflect the growing interest in automated informal payment systems within decentralized finance. By introducing features such as two-way market structures, decentralized platforms and incentive mechanisms, Mutuum Finance (MUTM) aims to build an infrastructure for more transparent financial services.