Ripple Acts to Fix Glitch, XRP Price Stays Steady

Ripple is gearing up to address a technical hiccup within the Automated Market Maker (AMM) on the XRP Ledger, impacting XRP traders by restricting their ability to deposit funds into AMM pools. The company has pinpointed the glitch and is in the process of introducing a solution, pending a community vote for its activation.

The issue at hand involved complications in routing liquidity from the decentralized exchange (DEX) payment engine to the AMM pools and order books under certain conditions. A collaborative effort from RippleX, Orchestra Finance, tequ, and other XRP Ledger community members led to the rapid identification and development of a corrective measure for this problem.

This fix, which is critical for restoring full functionality to the AMM, is undergoing review, testing, and preparation stages before being put forth to the XRP Ledger’s validator community for voting. Ripple advises traders to hold off on depositing into AMM pools and to redeem any held Liquidity Pool (LP) tokens in the interim.

Activation of this fix is poised to rejuvenate the community’s ability to generate passive income through AMMs. Details of the bug fix and its implications are available for public review on GitHub and will be included in the upcoming 2.1.1 rippled release. Further information and insights will be shared in a forthcoming blog post dedicated to the glitch and subsequent actions.

Meanwhile, Ripple remains embroiled in a legal battle with the SEC, which includes discussions around XRP sales to institutional investors and a potential $2 billion fine. This legal backdrop adds another layer of complexity to Ripple’s operational challenges.

From a technical analysis standpoint, XRP’s price movement has been stagnant, trading sideways below the $0.75 (approximately R14.21) mark since July 2023. The price frequently oscillates between support at $0.4743 (approximately R8.99) and resistance at $0.75, indicating a potential breakout should the AMM fix positively impact investor sentiment in South Africa and globally.