XRP Is Up as Ripple XRPL Plans Confidential Transfer Upgrade
Ripple (XRP) price is up 1.20% to $1.04, outperforming a flat Bitcoin, primarily driven by a technical rebound from oversold conditions after a liquidation squeeze.
The token climbed following Ripple’s XRP Ledger confidential transfer proposal and a rebound in spot ETF inflows. The XRP Ledger Foundation has proposed “Confidential Transfers,” a major upgrade using zero-knowledge proofs to encrypt transaction amounts.
Designed for institutional users, it includes batch processing and permissioned access for auditors, aiming to balance privacy with regulatory compliance.
This is bullish for XRP. By addressing a key institutional concern—data confidentiality—the upgrade could make the XRPL more competitive for tokenising real-world assets (RWAs) and handling sensitive financial settlements.
Crypto market analysts said successful adoption could drive new utility and demand for the ledger and its native asset. In addition, data from a cryptocurrency exchange revealed a 40% decline in XRP trading volume on Saturday, with transaction value of $1.01 billion in the last 24 hours.
The price had dipped to a local low of $1.014, triggering approximately $9.6 million in long liquidations. This forced selling created a vacuum that was quickly filled by spot buying, leading to a V-shaped recovery to current levels.
The move was amplified by oversold technical readings, with the 14-day RSI at 34.91. The bounce was more a function of leveraged positions being flushed out than a fundamental shift in sentiment.
XRP saw positive ETF flows. Also, U.S. spot Bitcoin and Ethereum ETFs attracted a combined $220 million on August 7, indicating a modest return of institutional interest that may have provided a slight beta tailwind for majors like XRP.
Traders said XRP’s move was partially supported by a calmer macro backdrop for crypto, though it significantly underperformed the ETF-driven momentum seen in BTC and ETH.
The immediate path is constrained. The next key trigger is the U.S. Senate’s consideration of the CLARITY Act, now delayed until at least September.
Technically, the 38.2% Fibonacci retracement level at $1.11 is the first major resistance. A hold above the recent $1.014 low is critical to avoid a test of the psychological $1.00 support.
The outlook is neutral with a bearish bias, as the asset lacks a clear bullish catalyst and faces regulatory uncertainty. The market anticipates U.S. regulatory action to drive an XRP re-rating as the token continues to trade against its own catalysts amid strong Bitcoin dominance.
However, the U.S. Senate has postponed the final vote on the pivotal CLARITY Act until after its September recess. Senate Majority Leader John Thune intends to file a procedural motion (cloture) to ensure the bill receives floor time later.
The delay stems from unresolved disputes over yield provisions and ethics enforcement powers. This is bearish for XRP in the short term. The delay prolongs the regulatory overhang that has historically weighed on the asset, potentially freezing institutional capital decisions.
However, the commitment to a September vote maintains a pathway to the clarity that could unlock significant long-term institutional adoption. #XRP Is Up as Ripple XRPL Plans Confidential Transfer Upgrade
