XRP price falls to two-month lows despite Grayscale adding Ripple to its Digital Large Cap Fund
|- XRP price has been witnessing bearish sentiment for the past four days following a near 20% crash.
- Grayscale announced that it would be removing Polygon (MATIC) from its Digital Large Cap Fund (GDLC).
- Ripple (XRP) and Avalanche (AVAX) were added to the Fund as part of January rebalancing owing to positive Q4 2023 reviews.
XRP price is expected to witness a bullish 2024 following a positive end to 2023, and Grayscale might fuel this fire. The world’s largest digital asset manager announced the rebalancing of its Digital Large Cap Fund (GDLC), making crucial inclusions and omissions to major cryptocurrencies.
Grayscale adds Ripple
Grayscale, in a press release on Friday, announced that it would be removing Polygon (MATIC) and adding Ripple (XRP) and Avalanche (AVAX) to its Digital Large Cap Fund (GDLC). Updating its Fund Component weightings of the GDLC Grayscale noted,
“Following the court’s decision, major digital asset trading platforms announced that they would once again list XRP on their platforms, and subsequently, XRP met the inclusion criteria of the DLCS Index.
The GLDC index has thus been adjusted to hold these large market cap assets with their respective weightage as follows:-
- Bitcoin (BTC) - 69.15%
- Ethereum (ETH) - 21.90%
- Solana (SOL) - 3.65%
- Ripple (XRP) - 2.54%
- Cardano (ADA) - 1.62%
- Avalanche (AVAX) - 1.14%
Despite the decision being a positive development for the altcoin, the digital asset did not respond accordingly, owing to the bearish sentiment in the crypto market at the moment.
XRP price sees further decline
XRP price is trading at $0.568 at the time of writing after declining by more than 3% in the past 24 hours. As a result of this correction, the altcoin lost the support of the 200-day Exponential Moving Average (EMA).
This was the last crucial level of support after the digital asset had already lost the 50- and 100-day EMA three days ago when the XRP price nearly crashed by 20% owing to the Matrixport FUD of SEC rejecting the spot Bitcoin ETF applications. Trading at a two-month low, the altcoin is presently close to falling to $0.550, a crucial technical and psychological support level.
Both the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) price indicators are heavily bearish at the moment, suggesting that XRP price might see a bounce back from the $0.550 level.
XRP/USD 1-day chart
The highly anticipated spot BTC ETF approval from the SEC is set to be a major bullish event for the crypto market, expected to drive all crypto assets’ prices up. This could help in XRP price recovery.
However, in the worst-case scenario where this is delayed, the Ripple token might see a further decline toward $0.500, invalidating the bullish event.
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