There is a development that will be a hurricane for the altcoin XRP, which we know with its strong community in the cryptocurrency world. Accordingly, it is expected that Ripple’s AMM launch will increase the purchasing pressure for XRP. Accordingly, this means a significant price increase for XRP.
Altcoin XRP’s recovery path
Ripple’s native cryptocurrency, altcoin XRP, has been on a recovery journey this week, riding on optimism from the upcoming launch of an Automated Market Maker (AMM) on This development means increasing purchasing pressure. It is also poised to potentially reshape the coin’s price trajectory.
David Schwartz has his thoughts on the subject. Ripple’s Chief Technology Officer (CTO) David Schwartz says what will happen with the implementation of AMM. Accordingly, he predicts a short-term increase in purchasing pressure. On the other hand, this announcement aroused great interest among the altcoin XRP community.
XRPL Update and AMM launch
Ripple has rolled out a new update of XRPLedger (XRPL), designated as version 1.12.0. This latest release forces all XRPL server operators to upgrade to support the proposed changes. In this context, the upcoming AMM launch becomes important.
Schwartz’s claim that buying pressure has increased also did not pass without scrutiny. Concerns have been raised about potential price declines during AMM’s pool balancing. Schwartz allayed these concerns by explaining that AMM is expected to purchase primarily from holders of the altcoin XRP. As a result, this could trigger a temporary increase in selling pressure. However, when AMM starts to yield returns, buying pressure may gain momentum, especially during price declines.
AMM’s role
In theory, an AMM sells assets when prices rise. It also reduces price volatility by purchasing assets when prices fall. Accordingly, it is designed to facilitate yield harvesting. This mechanism holds promise for future price stability of XRP.
XRP Ledger (rippled server) version 1.12.0 has been released.
If you operate an #XRPL server, upgrade to version 1.12.0 to ensure service continuity and the ability to vote for new amendments such as XLS-30.https://t.co/1J7QYXuPUT
— RippleX (@RippleXDev) September 13, 2023
Despite headwinds, altcoin XRP has made significant strides in its recovery journey. It successfully broke through the descending bearish channel, which was a significant technical achievement. Accordingly, if Altcoin XRP can maintain its position above this channel, it has the potential to turn the $0.4600 level into a solid support zone.
Altcoin XRP price
Looking at Kriptokoin.com, Ripple’s price is facing resistance levels at the 200, 100, and 50-day Simple Moving Averages (SMAs) located at $0.5107, $0.5666, and $0.5753, respectively. Overcoming these obstacles will be crucial for XRP’s upward momentum. Conversely, a decisive decline below the channel midpoint at $0.4191 could disrupt the positive outlook for altcoin XRP.
As Ripple’s AMM prepares for launch, holders of altcoin XRP are closely watching how this innovative mechanism will affect the coin’s market dynamics. The convergence of technology and market sentiment could shape the future of altcoin XRP’s price recovery.
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