Ripple’s Ledger’s Hit by Technical Issue – XRP Price at Risk of Plunge Below $0.60
Will Ledger's Issues Negatively Affect the XRP Price?
Key Takeaways
- Ripple’s Ledger launched on March 22 but faced a glitch on March 24.
- The XRP price has traded devoid of volatility for the past nine months.
- Will the Ledger glitch have a negative effect in the XRP price?
Ripple’s announced that it will integrate Automated Market Makers (AMM) brought much fanfare, but recent technical issues that caused the opposite reaction.
As the XRP price trades inside a critical support level, it is important to keep an eye on the Ledger issue, since failure to resolve it can bring negative attention that can have a negative effect on the XRP price.
Ledger Hit by Technical Issues
Ripple’s CTO David Schwartz announced the integration of AMMs into the XRP Ledger on March 22. The AMM brings passive income opportunities to the XRP community, who can provide liquidity and earn rewards. The AMM is protocol native, allows users to provide liquidity with a single asset and continuously searches for arbitrage opportunities.
We’ve identified a discrepancy in a few AMM pools, in which transactions are not executing as intended. Our engineering team is working to resolve the issue alongside community participants. Out of an abundance of caution, it’s best not to deposit new funds into AMM pools for…
— RippleX (@RippleXDev) March 23, 2024
However, on March 24, the Ripple team announced they have discovered a discrepancy in some AMM pools, which are not working as intended. The team requested users to not deposit funds into the AMM pools and redeem Liquidity Provider (LP) tokens if they have already deposited. A fix has not been announced yet.
XRP Price Prediction: Will Price Fall Below $0.60?
The XRP price has increased alongside an ascending support trend line since the start of the year. The trend line has been validated numerous times, most recently on January 31 (green icon). The bounce was strong and led to a high of $0.74 on March 10.
However, the XRP price has fallen since, validating the $0.74 horizontal area as resistance (red icon) and falling inside the $0.63 support. The resistance area and the ascending support trend line create an ascending triangle, considered a bullish pattern.
The MACD and RSI both give neutral readings. The RSI is falling and is only slightly above 50, while the MACD is falling and is close to 0.
As a result, the reaction to the $0.63 area can determine the future trend’s direction. A successful bounce can lead to a 17% increase to the $0.74 resistance, while a breakdown below $0.63 can lead to a 15% drop to the ascending support trend line at $0.55.
In any case, the long-term trend can still be considered bullish as long as the price does not break down from the ascending support trend line.
XRP Price Trades at a Crossroads
While the Ripple Ledger issue is expected to be fixed in the near future, the XRP price trend is still unclear, as it has been for most of the past two years. Whether the price breaks down below $0.63 or bounces instead can be a deciding factor in what the trend is.
