XRP (Ripple) Rises 2.4%...Network Upgrade and ETF Inflows Drive Rebound

▲ Bitcoin (BTC), XRP/AI generated image ©

XRP (Ripple) outperformed the market, driven by expectations of a major network upgrade and institutional capital inflows through XRP spot ETFs. In the short term, maintaining support at $1.06 is considered key for further gains.

According to cryptocurrency market aggregator CoinMarketCap on August 3 (local time), XRP recorded $1.08, up 2.40% in the last 24 hours. During the same period, Bitcoin (BTC) rose 1.26% and Ethereum (ETH) rose 2.61%, with the overall market sentiment also supporting XRP's rebound.

The biggest catalyst for the rise is the upcoming XRP Ledger (XRPL) v3.3.0 upgrade, slated for release next week. According to RippleX, this update includes five amendments, such as confidential tokens and batch transactions. As features that will enhance XRPL's utility in tokenization and institutional finance are unveiled, buying interest is believed to have flowed in ahead of the launch.

For the amendments to be activated, they must maintain over 80% support in validator voting for 14 days. Concurrently, US XRP spot ETFs saw a net inflow of $14.8 million this week, indicating continued institutional demand. This context explains why XRP's current rise is attributed not only to upgrade expectations but also to actual capital inflows and a broader market rebound.

Technically, XRP is defending its key support level of $1.06. If the price maintains above this level, there is a possibility of rising to $1.12, passing through the 20-day Exponential Moving Average (EMA) at $1.09. Conversely, if the daily close is below $1.05, the short-term bullish structure would be compromised, potentially retesting the year's low of $1. Therefore, the short-term outlook is assessed as 'cautiously bullish'.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*