Ripple rises 4% as Grayscale announces XRP investment fund

• Grayscale Investments, an asset management giant, is announcing the creation and launch of the XRP Trust on Thursday.
• Grayscale’s single-asset investment fund is expected to attract institutional investors and capital to the altcoin.
• XRP is gaining 4% on the day after surging over 10% earlier in the session.

Ripple (XRP) surged as much as 10% on Thursday following the announcement of a new institutional investment vehicle. The altcoin has corrected and sustained gains of 4% for now. Asset management giant Grayscale has announced the creation of a single-asset investment fund for XRP.

XRP was trading at $0.5602 at the time of writing.

Daily Market Reasons: Grayscale Announces XRP Trust

• Grayscale has $26 billion in assets under management as of January 10, 2024. The crypto asset management firm has announced the launch of a single-asset investment fund for XRP.
• In the official press release, Grayscale’s head of product and research, Rayhaneh Sharif-Askary, says the asset management giant plans to give investors exposure to a protocol with an important real-world use case.

• Ripple facilitates cross-border payments in seconds via XRP, the native token of the XRP Ledger, and this has the potential to transform legacy financial infrastructure.
• Grayscale’s announcement was met with excitement among XRP traders, and the altcoin hit a high of $0.5884, up 10% from its September 11 close of $0.5348, early Thursday.
• The XRP price has since corrected and the altcoin is trading at $0.5602, up 4% on the day.

Technical Analysis: XRP Could Extend Gains 7%

XRP has been in a multi-month downtrend since its July 13 peak of $0.9380. XRP could extend gains by 6.9% and reach the lower bound of the fair value gap (FVG) between $0.6217 and $0.6000. The MACD (Moving Average Convergence Divergence) indicator is a momentum indicator that supports the bullish thesis, and the green histogram bars above the neutral line indicate the underlying positive momentum in the XRP price trend.

XRP/USDT Daily Chart

If Ripple closes a daily candlestick below the 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.