XRP price ranges below key resistance as Ripple issues a fix for its AMM glitch

|ByEkta Mourya

  • Ripple is reviewing, testing and preparing a fix for the recent technical issue on the XRPLedger AMM. 
  • An amendment to the XRPLedger protocol needs to be voted in and supported by 80% of the participants within two weeks, for activation. 
  • XRP price is $0.62 on Wednesday, the altcoin is trading sideways below key resistance. 

XRP traders were affected by an issue in the Automated Market Maker (AMM) on the XRPLedger. Ripple identified the glitch and worked on a fix, preparing to put it to vote, and calling community members to finalize the amendment for quick activation of the AMM. 

Until the issue is resolved, XRP holders cannot deposit funds into AMM pools and Ripple advised traders to redeem their Liquidity Pool (LP) tokens. 

Also read: XRP price climbs towards $0.65 as SEC seeks from Ripple $2 billion in penalties

Daily digest market movers: Ripple develops fix for AMM, prepares to activate it 

  • The official blog titled “AMM Status Update” explains that a team including RippleX, Orchestra Finance, tequ, and other members of the XRP Ledger community moved quickly to identify a problem in the AMM’s operation. 
  • The problem was related to routing of liquidity from the DEX payment engine to AMM pools and order books, in scenarios that are complex. 
  • Ripple’s engineers have developed a solution for the recent technical glitch in the AMM on the XRPLedger. This is currently in the review, testing and preparation phase. 
  • The fix needs to be voted in by the XRPLedger community of validators, following that it will be successfully activated. 
  • Until the issue is resolved, Ripple asks XRP traders and market participants to refrain from depositing funds into the AMM pools and redeem any LP tokens that they hold.
  • Once the fix is activated, the XRPLedger community can resume earning passive income through AMMs. 
  • The release will be titled version 2.1.1. 
  • The Securities and Exchange Commission (SEC) vs. Ripple lawsuit’s latest development includes information regarding XRP sales to institutional investors and the regulator’s ask for $2 billion in fines and penalties. 
  • Find more information about it here. 

Technical analysis: XRP price could revisit $0.75, on this condition

Ripple price has traded sideways below $0.75 resistance since July 2023, as seen on the XRP/USDT weekly price chart. Every time XRP price drops to support at $0.4743, it bounces towards the top of the range, at $0.75. 

The current state of XRP price is range bound and $0.75 is a key resistance for the altcoin. A key break past this level could push XRPLedger’s native token towards weekly resistance at $0.86, seen in the chart below. This is likely to kickstart a rally in the altcoin. 

Investors should be wary of long positions while XRP price is range bound. XRP price is expected to collect liquidity below $0.63, one more time, before it breaks out in the short term. A sustained climb above the Fair Value Gap between $0.7527 and $0.7609 could cement an upward trend for the altcoin.

If these conditions are met, XRP price could revisit $0.75, make a clean break above this level and rally towards the resistance at $0.86.

XRP/USDT 1-week price chart 

On the downside, if XRP price sees a weekly candlestick close below the support at $0.4743, it could invalidate the recovery rally and signal an upcoming bearish trend reversal. In its decline, XRP price could collect liquidity at the monthly support at $0.2879, a level previously seen in June 2023.

 

Cryptocurrency prices FAQs

Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.

A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.

Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.

Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

RELATED CONTENT

Loading ...

Copyright © 2024 FOREXSTREET S.L., All rights reserved.