XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV

• XRP trades at $0.5879, climbs closer to the psychologically important $0.60 level. 
• Ripple prepares for launch of its stablecoin even as SEC head maintains harsh stance on crypto regulation. 
• Grayscale XRP Trust NAV climbs to $11.49, suggesting growth in institutional demand for the asset. 

Ripple (XRP) gained 2.3% since the start of the week. The altcoin’s gains are likely powered by key market movers that include Ripple USD (RUSD) stablecoin, Grayscale XRP Trust performance and the demand for the altcoin among institutional investors. 

The Net Asset Value (NAV) of Grayscale XRP Trust, a measure of the intrinsic value per share, is calculated at the end of each business day, according to the official website. While the NAV does not influence the underlying asset’s price, its trend helps identify the general direction in which the share price is headed. Investors use NAV to determine how the fund’s value has changed, likely indicative of its demand among institutional investors.

Additionally, in a recent interview the head of the Securities & Exchange Commission (SEC) said that crypto wasn’t “incompatible” with existing securities law.

Daily digest market movers: XRP could rally on the back of these catalysts

• XRP inches closer to the psychologically important $0.6000 level, trades at $0.5843, early on Thursday. 
• Ripple, the cross-border payment remittance firm, recently shared its plans for launching the Ripple USD (RUSD) stablecoin. The stablecoin plans to connect global financial firms and institutions, as well as enable cross-border payments through its stablecoin on the XRP Ledger (XRPL) and the Ethereum mainnet. 
• XRP holders await a launch date for the stablecoin, further regulatory clarity from the Securities & Exchange Commission is awaited for RUSD roll-out in the US. 
• Second market mover is Grayscale’s single asset investment fund, Grayscale XRP Trust’s performance. The official website shows NAV is at $11.49. The metric rallied to a peak of $11.77 on Tuesday, earlier this week.

 

NAV per share for Grayscale XRP Trust 

 

• The SEC vs. Ripple lawsuit is the third market mover, while the lawsuit ended with what seems to be a partial win for both parties, there is a likelihood of an appeal from the regulator. There is no comment on the appeal from the SEC. However, in a recent interview with CNBC on Wednesday, Chair Gary Gensler reiterated the clarity provided by existing securities laws and said that “there’s nothing incompatible about the field with the basic protections that are in the securities laws.”
• Even as XRP has legal clarity as a non-security in transactions on secondary-market platforms or crypto exchanges, it was treated as a security in its sales to institutions. Further, if the SEC appeals the July 2023 ruling of Judge Analisa Torres, it could strip the altcoin of its status as a non-security. The “what ifs” have XRP traders gripped to every move of the regulator. 

Technical analysis: XRP ready for nearly 6% gains if $0.5500 support holds

XRP attempted to break out of its downward trend on several occasions throughout July, August and September to no avail. The altcoin has traded in a range-bound manner between the August 7 top of $0.6434 and the September 6 low of $0.5026. 

XRP held steady above support at $0.5026 for nearly 12 days. The asset has found support at $0.5500. If XRP sustains above this level, a rally to $0.6217 is likely. This would mark nearly 6% gains in the altcoin. 

The Moving Average Convergence Divergence (MACD) indicator supports the bullish thesis. Green histogram bars above the neutral line signal an underlying positive momentum in XRP price. 

XRP/USDT daily chart 

A daily candlestick close under $0.5500, a key support for the asset could invalidate the bullish thesis. XRP could sweep liquidity in the imbalance zone between $0.5413 and $0.5556. 

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