A key risk management strategy is now coming into focus.
On the surface, high risk-rewards mean that there is more upside than downside. However, in current market conditions, traders must ask themselves if they are willing to take on the risk for the potential gains. This makes Ripple’s latest move on XRPL timely.
In a recent announcement, the XRPL Foundation outlined a new quantum resistance roadmap that will see the entire network upgraded to ML-DSA-44 (NIST Approved Post-Quantum Digital Signature) by 2028.
Under the proposal, account owners will be able to add a post-quantum public key to their accounts and deactivate their current signing keys. This would let XRPL accounts transition from traditional cryptographic signatures to a system designed to withstand potential attacks from future quantum computers.
In short, Ripple is pushing XRPL towards a more future-ready security model. As quantum computing threats become a greater concern, network security could become an increasingly important factor in investors’ long-term “risk-reward” assessment of XRP.
Notably, this is coming at an interesting time considering there is a lot of FUD in the market.
XRP certainly hasn’t been immune to this sell-off with $1 looking extremely vulnerable. So, does the long-term potential of XRPL’s quantum resistant upgrade justify the risk of holding Ripple [XRP] through the current downturn?
XRP faces a risk-reward test as quantum hopes clash with weak signals
The market is becoming increasingly divided on XRP.
Some investors see this as an opportunity to buy the dip, seeing levels like $0.80 as a potential lifetime opportunity. Moreover, on the long-term bullish side, the XRPL quantum resistance upgrade for Ripple is positive for holding XRP. Bears, however, are getting louder with the “XRP to zero” narrative taking hold.
This is what makes the chart below so important. According to SoSoValue, Spot XRP ETFs recorded their largest single-day net outflows of the year on 9th November. Over $10 million was withdrawn from the funds, the most seen in a day since 9th March, when outflows topped $18 million.
This alluded to increasing selling pressure and weaker institutional demand for XRP.
Together, weakening sentiment and rising ETF outflows may be shifting the balance further in favour of bears.
This makes XRPL’s recent quantum-resistance upgrade less likely to improve XRP’s near-term risk-reward setup. With broader market FUD, weak technicals, and sustained ETF outflows adding to selling pressure, the downside risk remains significant.
As a result, the XRP-to-zero narrative cannot be easily dismissed, even with the network’s long-term security improvements.
Final Summary
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XRPL plans to introduce quantum-resistant security by 2028, boosting its long-term outlook.
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XRP faces growing selling pressure as ETF outflows top $10 million and bearish sentiment builds.
