XRP (XRP) is testing some seriously important support levels right now, and the timing is awkward because Ripple just floated some big ideas about fundamentally redesigning how the XRP Ledger works. The disconnect between the technical vision and the price action is striking.

Engineers Sketch Out Staking Framework

RippleX head of engineering J. Ayo Akinyele dropped a proposal on Wednesday that explores how staking might work on the XRP Ledger. The core challenge is figuring out where staking rewards would come from and how to distribute them fairly—questions that require rethinking some foundational design choices.

Here's the thing: XRPL currently burns transaction fees to keep supply in check. That's baked into the original architecture. Adding staking would mean changing that fundamental mechanism, which Akinyele acknowledges. The pitch is that staking could strengthen long-term participation by rewarding users who help maintain the network.

Ripple executives have been talking about staking more openly in recent months, though they're careful to stress this remains a long-term concept rather than something landing anytime soon.

Two Models on the Table, Both Complicated

Ripple CTO David Schwartz added his own thoughts with two high-level models worth considering. The first introduces a dual-layer validator system—an incentivized "inner" layer of roughly 16 validators that would advance the ledger, overseen by a broader "outer" layer managing amendments and fees. Think of it as a core group doing the heavy lifting while a larger group handles governance.

The second concept keeps the current validator structure intact but redirects transaction fees toward zero-knowledge proof verification instead of burning them outright.

Schwartz called both models technically viable but warned they're not practical in the near term. Engineering risks and design trade-offs make implementation challenging. So we're talking about ideas rather than imminent upgrades.

These proposals arrive as Ripple continues pushing into new territory, including a recent announcement with Mastercard (MA) and Gemini exploring use of its dollar-backed RLUSD stablecoin for settlement purposes.

Massive Outflows Hit Exchanges

While Ripple engineers sketch out the future, traders are voting with their wallets right now. XRP is under heavy pressure after $181.53 million left exchanges yesterday—the largest single-day outflow of 2025. Another $59.3 million followed early today, bringing the two-day total to over $240 million.

That's not just noise. When outflows spike like this while price sits on critical support, it often signals that larger holders are exiting and confidence is cracking. Price has dropped to about $1.90, a level that's protected XRP several times this year. The question is whether it holds again.

Technical Picture Keeps Deteriorating

The chart doesn't offer much comfort. XRP has been trading below a falling trendline that started back in August, and every bounce has been rejected at roughly the same spot near $2.20. The token is sitting below all key moving averages, which is never a good look.

The Parabolic SAR continues printing above price, confirming the downtrend remains intact. Each rebound has been progressively weaker, creating a neat staircase of lower highs: $2.45, then $2.32, then $2.18, then $1.98. That pattern tells you buyers are losing steam.

If XRP can't hold the $1.85 to $1.90 support zone, the next major demand area sits near $1.60. That region supported two rallies this year—one in March and another in May—making it the logical next spot where buyers might try to step in. But getting there would mean another roughly 15% drop from current levels.

The Disconnect

So you've got ambitious technical proposals on one hand and ugly price action on the other. Staking could theoretically change the economics of holding XRP and make long-term participation more attractive. But those changes are conceptual and distant, while the selling pressure is immediate and measurable.

The market doesn't care much about engineering whitepapers when momentum is heading south and major holders are heading for the exits. Whether the $1.90 support holds or breaks in the coming days will tell us a lot about whether there's real conviction among the remaining buyers, or whether this latest technical proposal is just background noise to a larger repricing.