XRP price sustains above $0.63 after Ripple encounters error with AMM liquidity pools
- XRP Ledger’s Automated Market Makers experienced a technical glitch, leading to discrepancies in transactions.
- Ripple called community participants to vote on the amendment and act quickly to fix the error.
- XRP price sustained above $0.63 on Monday, maintaining its upward trend.
Ripple identified a technical issue in a few of its Automated Market Maker (AMM) Liquidity Pools (LP) over the weekend, resulting in the failure of many transactions. The firm asked users to redeem the LP tokens as Ripple’s engineering team worked on resolving the issue.
XRP price – the native cryptocurrency of the payment network developed by Ripple – maintained its uptrend on Monday, climbing slightly to $0.63.
Also read: Can Ripple borrow a page from meme coins and trigger 50% rally?
Daily digest market movers: Ripple faces AMM pool issue
- Ripple announced in an official tweet on Sunday that the team identified a discrepancy in a few AMM pools and noted that transactions are not executing as intended. Ripple’s engineering team is working on resolving the issue alongside participants from the XRP community.
- Ripple warned community members not to deposit new funds into AMM pools and those holding the LP tokens should consider redeeming them.
- The payment giant has said that the discrepancy affected how the DEX payment engine routes liquidity through AMM pools and order books in some complex payment path scenarios.
- The proposed fixes to the technical glitch will go through an amendment voting process. Ripple called community participants to act quickly and close the deposit functionality, in their tweet thread on X.
The issue has been identified – the discrepancy affected how the DEX payment engine routes liquidity through AMM pools and order books in some complex payment path scenarios. We’re reviewing the proposed fix now with the community (thank you @OrchestraFi, @_tequ_, etc), which…
— RippleX (@RippleXDev) March 24, 2024
Technical analysis: XRP price maintains uptrend on Monday
XRP price increases nearly 2% on the weekly time frame. The altcoin sustains above $0.63 on Monday, posting higher highs and higher lows since Friday on the 4-hour price chart.
XRP price faces resistance at $0.6561 and $0.7025 in its path to retrace its year-to-date peak of $0.7440 from March 11. These two resistance levels represent the 50% and 23.6% Fibonacci retracement of the decline from the March 11 top of $0.7440 to the March 20 low of $0.5681.
If the uptrend is sustained, XRP price could climb beyond the year-to-date peak and attempt to fill the Fair Value Gap (FVG) between $0.7527 and $0.7609 on the 4-hour time frame.
The Moving Average Convergence/ Divergence (MACD) indicator flashes green bars above the zero line, supporting positive momentum in XRP.
XRP/USDT 1-day chart
On the downside, XRP price could see a 4-hour candlestick close below the $0.6057 level, close to the psychologically important $0.60 threshold. XRP price could note a trend reversal with this decline and find support at $0.60, followed by the March 20 low of $0.5681.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
