A technical issue caused problems with the XRP Ledger's Automated Market Maker (AMM) pools.
The glitch raised questions about the reliability of DeFi protocols as the cryptocurrency market prepares for a potential bull run.
The faulty AMMs led to incorrect transaction processing, prompting RippleX to advise users to postpone deposits and LPs to withdraw assets.
DeFi projects built on XRP Ledger pools, like Sologenic and Anodos, were also forced to suspend services due to the glitch.
Crypto analyst Egrag Crypto predicts a bull run for XRP, possibly reaching $1 or $1.2 based on technical analysis.
The crypto and Defi community got hit with unexpected news this week as RippleX, the company behind Ripple and XRP reported some issues with the XRP Ledger.
This unexpected turn of events has now raised concerns about the XRP ledger, and how safe DeFi protocols are, considering how the next bull run is fast approaching.
To understand what happened with the XRP Ledger, we must first understand what Automated Market Maker (AMM) Pools are.
AMMs are the backbones of DEXs and are responsible for controlling trades without the need for traditional order books.
AMMs allow users to swap assets directly with the liquidity pool, removing the need for a third party.
This is the part of the XRPL that went wrong, leading to incorrect transaction processing.
RippleX took to X, urging users to postpone any new deposits onto the affected AMM pools.
Additionally, those holding liquidity provider (LP) tokens were advised to withdraw their assets to prevent further complications.
The glitch in the XRP Ledger's AMMs caused a wave of reactions from the community, with some users expressing frustration and wondering if the ledger was ever reliable to begin with.
Moreover, several projects which depend on the XRPL pools like Sologenic and Anodos have also been forced to temporarily suspend their services.
Sologenic suspends services
Despite thorough testing in January before launching the XRPL AMMs in March, the glitch ended up happening, with RippleX developers and the rest of the XRP community diligently working towards a solution.
In a series of posts on X, crypto trader and analyst, Egrag Crypto noted that XRP may be about to enter a bull run that would push it to $1.
The expert said that XRP is approaching the last stage before the "Official Bull Run Announcement."
"#XRP is currently mirroring its 2017 cycle, entering the final phase before the official Bull Run Announcement," he says.
XRP bull run inbound
Moreover, the analyst notes that the 10th "W" technical pattern, is in good alignment with the state of the market, as shown above.
Egrag Crypto says that this pattern usually occurs before notable price changes, supporting the theory that XRP is about to go parabolic.
In all, the analyst offered two possible trajectories for XRP's price or target values. He says that XRP could be aiming for a logarithmic projection of $1.2 and a non-logarithmic projection of $1, depending on the pattern.
Overall, the analyst posits that if XRP were to hit the $1 milestone, it would present a favourable opportunity for investors, considering the cryptocurrency's prolonged consolidation under this line, as well as the legal clarity we obtained from the legal battle between Ripple and the SEC.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
