XRP Surges on Confidential Transfer Upgrade Plans Amid Regulatory Uncertainty
XRP's price rose 1.20% to $1.04 on August 7, outperforming Bitcoin, which remained flat.
This rebound is attributed to a technical recovery from oversold conditions following a liquidation squeeze.
Ripple's XRP Ledger has proposed a major upgrade called Confidential Transfers, which uses zero-knowledge proofs to encrypt transaction amounts. This upgrade aims to balance privacy with regulatory compliance and could increase the ledger's competitiveness in tokenizing real-world assets (RWAs) and handling sensitive financial settlements.
Data from a cryptocurrency exchange showed a 40% decline in XRP trading volume on Saturday, but the price still managed to bounce back due to oversold technical readings. The 14-day RSI was at 34.91, indicating that the asset was oversold, leading to a V-shaped recovery.
The move is also supported by positive ETF flows, with U.S. spot Bitcoin and Ethereum ETFs attracting a combined $220 million on August 7.