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- 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.
- 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.