Ripple gains 4% as Grayscale announces XRP trust to bring in institutional capital
- Grayscale Investments, an asset management giant, announces the creation and launch of XRP Trust on Thursday.
- Grayscale’s single-asset investment fund is expected to attract institutional investors and capital to the altcoin.
- XRP gains 4% on the day, having surged more than 10% earlier in the session.
Ripple (XRP) rallied as much as 10% on Thursday following the announcement of a new vehicle for institutional investment. The altcoin corrected and has sustained 4% gains for now. Asset management giant Grayscale announced the creation of a single-asset investment fund for XRP.
XRP trades at $0.5602 at the time of writing.
Daily digest market movers: Grayscale announces XRP Trust
- Grayscale has $26 billion in assets under management as of January 10, 2024. The crypto asset management firm announced the launch of a single-asset investment fund for XRP.
- In the official press release, Grayscale’s Head of Product & Research, Rayhaneh Sharif-Askary, says that the asset management giant plans to give investors exposure to a protocol with an important real-world use case.
Grayscale XRP Trust allows investors to gain exposure to $XRP, the token powering the XRP Ledger $XRPL, a distributed, peer-to-peer network created to help cross-border financial transactions.
— Grayscale (@Grayscale) September 12, 2024
Learn more, see important disclosures, or reach out to us: https://t.co/2gq5w3Fbpj pic.twitter.com/RrpdvmCQRl
- Ripple facilitates cross-border payments within seconds through XRP, the native token of the XRP Ledger, and this has the potential to transform legacy financial infrastructure.
- Grayscale’s announcement was met with enthusiasm among XRP traders, and the altcoin peaked at $0.5884, a 10% rally from the September 11 close of $0.5348, early on Thursday.
- Since then XRP price corrected and the altcoin trades at $0.5602, up 4% on the day.
Technical analysis: XRP could extend gains by 7%
XRP has been in a multi-month downward trend since its July 13 top of $0.9380. XRP could extend gains by 6.9% and rally to the lower boundary of the Fair Value Gap (FVG) between $0.6217 and $0.6000. The Moving Average Convergence Divergence (MACD) indicator is a momentum indicator that supports the bullish thesis and the green histogram bars above the neutral line indicate positive underlying momentum in XRP price trend.
XRP/USDT daily chart
If Ripple closes a daily candlestick under September 11 low of $0.5231, it could invalidate the bullish thesis, and XRP could collect liquidity at $0.5000, another key support level that has held steady since July 2024.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
