XRPL's unprecedented performance upgrade completed, why is the XRP price unmoved?

▲ XRP/AI-generated image ©

The XRP (Ripple) market is experiencing fluctuations as a new update has been implemented, significantly improving the network's long-term stability and efficiency. Contrary to expectations that this technical enhancement would serve as a bridgehead for the expansion of the decentralized finance (DeFi) ecosystem and the acceptance of institutional finance, the price remains stagnant, coinciding with a general market downturn.

According to the cryptocurrency specialized media Finbold on May 27 (local time), the XRP Ledger (XRPL) activated the fixCleanup3_1_3 amendment, which focuses on securing stability. This update removes expired non-fungible token (NFT) offer items that had accumulated on-chain and slowed down data query speeds, and modifies the withdrawal mechanisms for vaults and single-asset vaults. It also resolved credit limit issues in lending protocols, laying the foundation for future DeFi activation within the network.

This amendment had a structure that required approval from over 80% of valid nodes to be activated and passed smoothly through the default approval system included in the rippled 3.1.3 version. Currently, validators and nodes that have not completed the upgrade by the deadline are excluded from network consensus or transaction processing. Therefore, developers and investors are paying close attention to whether this transition process will prove the reliability of XRP's governance and future roadmap.

Despite the technical positive news, the XRP price is showing a somewhat subdued trend, coinciding with a general market decline. As of the time of reporting, XRP is trading at $1.33, down 0.8% from 24 hours ago, and its daily trading volume has surged by nearly 50%. During the same period, Bitcoin (BTC) fell by 1%, and the total cryptocurrency market capitalization decreased by 0.89% to $2.54 trillion, indicating an overall contraction in investor sentiment.

Currently, XRP is forming a sideways trading range between its major support level of $1.3 and resistance level of $1.36. The 7-day Relative Strength Index (RSI) has fallen to 30, close to the oversold zone, suggesting a potential weakening of downward pressure. However, if the $1.3 support level breaks, there is a risk of further decline to $1.25. The future price direction is expected to synchronize more with whether BTC settles above the $75,000 mark and the direction of the Fed's monetary policy following the release of the US PCE inflation data, rather than its own updates.

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