XRP up 9% after Grayscale’s XRP Trust update – Here’s what’s coming up now


  • Grayscale has announced the creation of Grayscale XRP Trust
  • XRP’s price surged by 9.8% following the update

Over the past month, the XRP community has seen a sustained moment of peace as Ripple’s legal woes seemed to gradually disappear. Its recent legal wins against the SEC have given the community hope to continue aiming for a better future.

This optimism is now evidenced by the entry of crypto asset manager Grayscale.

XRP Trust is here!

According to Grayscale, the crypto asset manager has started offering Grayscale XRP Trust. This trust hopes to provide investors the opportunity to gain access and exposure to the token that powers XRP Ledger. Through this exposure, institutions will have access to a distributed, peer-to-peer network, established to facilitate cross-border financial transactions.

Source: Grayscale

According to the asset manager’s update, the fund is now available to eligible accredited investors through private placement.

Notably, Grayscale’s entrance is part of Ripple’s vision to focus on enterprise solutions, rather than retail XRP holders. In fact, according to Jake Claver, Ripple’s business strategy is wholly centred on large-scale payment solutions rather than retail adoption like other blockchain projects.

Unlike ETFs with variable share volume, the closed-end trust has a fixed number of shares, making it less liquid.

How did the market react?

Following the introduction of Grayscale XRP Trust, the markets immediately reacted positively. For instance, XRP’s price surged by 9.8%, hitting a local high of $0.588, with the trading volume soaring by 105.54% to $1.7 billion. Its market cap hiked by 6% to $32.2 billion too.

At the time of writing, the altcoin was valued at $0.57.

Can XRP rally from here?

Over the past month, XRP has seen sustained uptrend momentum on the charts. While the altcoin did gain on the daily charts, it did so on the weekly charts too – Hiking by 5.07%.

XRP Ledger NVT Ratio

Source: CryptoQuant

Prevailing market conditions could allow the altcoin to register further gains on the price charts.

For instance, the Network value to transactions (NVT) Ratio has been declining since 31 August. It fell from 1732 to 118 at press time. Here, a declining NVT Ratio suggests the altcoin is undervalued, indicating the market has not fully recognized the value of the network’s transaction usage.

When the asset is set like this, it implies long-term confidence in the network’s utility as more users interact with the blockchain for transactions. This is a bullish signal which means the market will eventually catch up, pushing the prices up.

xrp fdr

Source: Santiment

Additionally, XRP’s funding rate aggregated by exchange has remained largely positive over the past week. What this means is that long positions have been paying short. This is another bullish sentiment as it suggested investors are anticipating the price to rise and even pay premiums during market downturns.

Simply said, XRP is enjoying market favourability, as evidenced by greater institutional interest. If positive market sentiment remains, the altcoin will attempt the $0.611 resistance level in the short term.

In a bullish scenario, it will break out of the $0.64 resistance level that has proven stubborn in the past.

Next: Bitcoin at $58K: A price surge or drop, what’s next for BTC?



Source link

About The Author

Scroll to Top