- 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 AMM bug fix is open for review on GitHub and will be in the 2.1.1 release of rippled. We’ll also publish a blog post tomorrow with more info about what happened and next steps. https://t.co/Z5v0cTvOvF
— RippleX (@RippleXDev) March 27, 2024
- 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.