An upsurge in XRP price was witnessed following the news on September 12, with crypto fund manager Grayscale introducing an XRP Trust. This rapid surge propelled the token by over 6%, reaching $0.56715. In just moments, XRP’s market cap shot up by an impressive $2.59 billion, pushing its total market value to $32.04 billion post-Grayscale announcement. As XRP is currently trading well above its 200-day simple moving average, traders view this as a positive sign.
Traders are now closely monitoring key support and resistance levels for XRP. The token has strong support at $0.50382, which has remained steadfast amidst recent market fluctuations. On the upside, XRP faces immediate resistance at the psychological threshold of $0.60. Given the building bullish momentum, it wouldn’t be surprising to observe XRP testing higher resistance levels soon, especially if institutional interest continues to rise due to Grayscale’s trust offering.
The recent Grayscale news follows Ripple’s significant legal win against the SEC, casting a brighter outlook on XRP’s future. Grayscale’s decision to launch an XRP Trust is crucial, hinting at a potential path towards the first spot XRP exchange-traded fund (ETF) in the U.S. Such a development could pave the way for broader institutional investment in XRP.
Grayscale’s reentry into the XRP arena signifies a notable shift, especially after dissolving its previous XRP Trust in 2021 during Ripple’s legal challenges. The new closed-end fund offers accredited investors direct exposure to XRP, aligning with Grayscale’s vision for crypto investment products. The launch of the Grayscale XRP Trust not only impacts short-term prices but could potentially alter the crypto landscape in the long term.
Furthermore, if a spot XRP ETF materializes, it has the potential to attract a fresh wave of institutional investors, bolstering liquidity and bringing stability to XRP’s price. This could transform XRP from a volatile asset into a more mainstream digital currency, particularly for cross-border transactions. Despite XRP’s tumultuous journey, recent legal and market victories have instilled renewed confidence in the project.
Should Ripple continue to capitalize on its current momentum while Grayscale’s trust lures institutional funds, XRP might be poised to enter a new phase characterized by adoption and expansion, rather than regulatory conflicts and uncertainty. Please note that the information provided does not constitute investment advice, and investing in cryptocurrencies carries inherent risks.