Over the weekend, Ripple faced a technical issue within some of its Automated Market Maker (AMM) Liquidity Pools (LP), resulting in transaction failures. The company urged users to redeem their LP tokens while its engineering team worked on resolving the problem.
XRP Price Sustains Uptrend Amidst Ripple’s Technical Challenge
Despite Ripple’s AMM pool error, XRP’s price continued its upward trajectory on Monday, reaching $0.63. Ripple announced on Sunday the identification of discrepancies in multiple AMM pools, leading to transaction disruptions. However, the engineering team, alongside the XRP community, promptly worked to resolve the issue.
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Ripple cautioned its community against depositing new funds into AMM pools and advised holders of LP tokens to consider redeeming them. The discrepancy impacted the functionality of the DEX payment engine in certain complex payment path scenarios.
Proposed Fixes and Voting Process
Ripple proposed fixes for the glitch, which will undergo an amendment voting process. The community was urged to act promptly, especially in closing deposit functionality. On the weekly timeframe, XRP surged almost 2%, staying above $0.63. The altcoin showed higher highs and higher lows since Friday on the 4-hour chart.
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XRP encountered resistance at $0.6561 and $0.7025 on its path to retrace its year-to-date peak of $0.7440 from March 11. These resistance levels corresponded to the 50% and 23.6% Fibonacci retracement levels.
Potential Upside Movement
Should the uptrend persist, XRP price could surpass its year-to-date peak and aim to fill the Fair Value Gap (FVG) between $0.7527 and $0.7609 in the 4-hour time frame.
The Moving Average Convergence/Divergence (MACD) indicator signaled bullish momentum, with green bars appearing above the zero line, bolstering positive sentiment toward XRP.
In the event of a downside move, XRP price might witness a 4-hour candlestick close below the $0.6057 level, nearing the psychologically significant threshold of $0.60. Support levels were anticipated at $0.60, followed by the March 20 low of $0.5681.
