Ripple addresses a recent technical glitch affecting the XRPLedger’s Automated Market Maker (AMM). To resolve the issue, Ripple is developing a fix that requires approval from 80% of the XRPLedger community within two weeks for activation. As a result, XRP price remains stagnant at $0.62, trading below crucial resistance levels.
Traders using the XRPLedger’s AMM encountered difficulties due to the glitch, prompting Ripple to identify and work on a solution swiftly. Until the fix is implemented, XRP holders are advised not to deposit funds into AMM pools and to redeem their Liquidity Pool (LP) tokens.
The fix for the AMM glitch is currently undergoing review, testing, and preparation phases by Ripple’s engineers and other members of the XRPLedger community. Once validators approve, the fix will be activated, allowing the community to resume earning passive income through AMMs.
Additionally, Ripple has shared updates about the AMM bug fix on GitHub, with plans for its inclusion in the upcoming 2.1.1 release of Rippled.
In other news, the ongoing SEC vs. Ripple lawsuit reveals details about XRP sales to institutional investors, alongside the regulator’s request for $2 billion in fines and penalties.
From a technical standpoint, the XRP price has remained below $0.75 resistance since July 2023. A breakout above this level could propel XRP towards weekly resistance at $0.86, initiating a potential rally. However, caution is advised for long positions while XRP remains range-bound, with expectations for a possible revisit of liquidity below $0.63 before a breakout.
On the downside, a weekly close below support at $0.4743 could invalidate the recovery rally, signalling a bearish trend reversal. In such a scenario, XRP may target liquidity at the monthly support of $0.2879, observed in June 2023.
CRYPTOCURRENCY METRICS FAQS
What is circulating supply?
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
What is market capitalization?
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
What is trading volume?
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
What is funding rate?
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
