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

• 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.

 

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