Grayscale’s XRP Trust Sparks 10% Rally—Can This Momentum Push XRP Past $0.60?

XRP has recently gained momentum, primarily due to Grayscale Investments’ announcement of its new XRP Trust. This development has sparked renewed interest among traders and investors.

Grayscale’s XRP Trust Launch

On September 12, 2024, Grayscale officially launched its XRP Trust. This trust allows accredited investors to gain exposure to XRP, marking the company’s return to this cryptocurrency. Previously, Grayscale dissolved its XRP Trust in January 2021. The new trust operates similarly to Grayscale’s other single-asset investment trusts. It aims to facilitate institutional investments in XRP, which powers the XRP Ledger for cross-border transactions.

Following this announcement, XRP’s price surged by over 10%. As a result, it reached approximately $0.59. This rally indicates a renewed confidence among investors. Furthermore, many speculate that Grayscale may eventually convert this trust into an exchange-traded fund (ETF). This potential conversion could broaden retail investors’ access to XRP, generating significant excitement in the market.

Technical Analysis and Price Predictions

As of September 13, XRP trades within a symmetrical triangle pattern. This pattern suggests potential for further price movement. Analysts believe that if XRP maintains its position above the lower trendline, it could target resistance levels around $0.60. However, if it declines below this trendline, the price may drop toward $0.48, near the 0.236 Fibonacci retracement level.

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Looking ahead, the upcoming Federal Reserve rate decision on September 19 could influence XRP’s price trajectory. Market sentiment appears to shift positively, especially since XRP has underperformed compared to other cryptocurrencies throughout 2024. Analysts suggest that XRP, being relatively underbought, has more room for growth than other assets.

In conclusion, the combination of Grayscale’s XRP Trust launch, favorable regulatory developments, and positive technical indicators suggests that XRP’s price may continue to rise. The potential for an ETF conversion adds optimism, as both institutional and retail interest in XRP grows. Nevertheless, traders should remain cautious of market volatility and regulatory challenges that could impact XRP’s future.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.