thecryptobasic.com
While the $XRP Army anticipates the automated market maker (AMM) functionality on $XRP Ledger going live in a few days, a notable community figure has suggested $XRP’s price could crash significantly.
$XRP community investigator Mr. Huber has urged $XRP holders to prepare for the asset’s potential reaction after the AMM finally launches. Mr. Huber drew inspiration from the occurrence with $XRP’s prominent rival, Stellar ($XLM).
$XRP Crashing Like $XLM After AMM
In particular, the investigator cited that $XLM’s value collapsed by over 80% after its AMM functionality went live in late 2021. Notably, market data substantiate this claim.
Just to mentally prepare the XRPCommunity. Stellar dropped more than 80% after the AMM went live. It litteraly marked the top. https://t.co/qjHnUOQlNj pic.twitter.com/pA2tH0kc2k
— Mr. Huber🔥🦅🔥 (@Leerzeit) March 17, 2024
As of November 2, $XLM traded at $0.3661. While the Stellar AMM launched the following day, $XLM saw a brief spike that sent its value to $0.3915 about a week later.
However, a continuous downtrend that $XLM never recovered from followed. The asset continued sinking month after month, reaching as low as $0.098 a year after the Stellar AMM launched.
Mr. Huber sees a similar scenario playing out with $XRP, especially given $XRP and $XLM’s history of identical market performance. He pinpointed that the asset could tank to the $0.1 and $0.11 range.
The AMM has the potential to push the $XRP price down to around 10-11 cents. pic.twitter.com/27fyh1gLUO
— Mr. Huber🔥🦅🔥 (@Leerzeit) March 17, 2024
While $XRP trades around $0.57 at press time, the outlook translates to a potential 82% price collapse for $XRP.
Community Reacts
Meanwhile, notable figures in the $XRP community, including analyst Dark Defender, have contested Mr. Huber’s outlook. Dark Defender claimed $XRP has become immune to news events. He cited instances where $XRP performed notably without news and other cases of fair performance amid new events.
At the same time, some others expressed indifference about $XRP’s potential performance after the AMM goes live.
$XLM Crashed After AMM Due to Broader Bear Market
Notably, it is worth mentioning that $XLM’s AMM launched exactly at the peak of the 2021 bull market, where the overall market became bearish. Essentially, $XLM’s downturn after the AMM did not result mainly from the automated market maker.
Other commentators used this point to contest Mr. Huber’s view of $XRP crashing 82% after the XRPL AMM became operational. In response, he highlighted that the current bullish phase has persisted for a while, implying the market is nearing the top.
Moreover, Mr. Huber countered the view of those who are bullish about the coming of the AMM by saying, “It doesn’t incentives holding; it incentives trading. And 50% of trading is selling.”
Why do you think that? It doesn't incentives holding, it incentives trading. And 50% of trading is selling.
— Mr. Huber🔥🦅🔥 (@Leerzeit) March 17, 2024
As The Crypto Basic previously reported, the expected XRPL AMM is currently live on the test net. Recently, an $XRP validator demonstrated the functionality to the public by deploying 20 $XRP and 12 $USDC in an $XRP/$USDC liquidity pool.
Ultimately, the $XRP community expects the public availability of the $XRP AMM in the next three days.