Ripple (XRP) Price Forecast: Grayscale Investment Triggers $628M BUY Signal

XRP Price Analysis:

XRP price rose a 20-day peak of $0.60 on Sept 14, up 18% within the weekly-timeframe, markets reports suggest Grayscale’s new cryptocurrency trust investment offering announcement has propelled XRP ahead of the broader altcoin market average.

XRP Price Surges on Grayscale Announcement

On Saturday, Sept 14, XRP price grazed the $0.60 price level, for the first time since Aug 27. Recent market reports suggests that the Ripple-backed coins, chart topping performance is linked to Grayscale’s adding XRP to its growing list of new Cryptocurrency Trusts.

Grayscale’s Cryptocurrency Trusts are a class of investment offerings that allows corporate and accredited TradFi investors in the US to gain direct exposure to crypto assets.

The announcement signalled mainstream acceptance of XRP by corporate entities in the US, after a prolonged period of regulatory uncertainty triggered by the long-running lawsuit against the SEC which came to a conclusive last month.

The blue-shaded area in the chart above shows how XRP price reaching $0.60 on Sept 14, brings it weekly timeframe gains to 18%. Meanwhile the TOTAL3 chart below it shows that the broader altcoin markets only grown by 12% during the weekly trading period between Sept 7 and Sept 14.

The global cryptocurrency sector has been on a steady uptrend over the past week, thanks to multiple dovish macroeconomic indicators published by US authorities.

However, XRP price has outperformed the broader market trend in the past week, by nearly 8% signaling investors reaction to Grayscale’s announcement may have catalyzed the outsized price gains.

XRP Open Interest Hits $628M

Looking beyond the price action, derivatives markets data suggests more gains could follow in the days ahead. Following Grayscale’s announcement, XRP perpetual futures contracts have seen a considerable increase in fresh capital inflows.

Coinglass’ Open Interest chart below tracks to the total value of capital stock invested in active derivatives contracts for specific crypto assets, providing insights into short-term traders’ sentiment around vital market events.

From $593 million on Sept 12, XRP open interest now reached $628 million at the time of publication on Sept 14. This signals that futures traders have flooded XRP derivatives markets with $31 million fresh capital inflows in the last 48-hours.

But notably, this reflects only a 5% growth in XRP open interest, which pales compared to the 12% price increase recorded within the same period.

When prices grow fast than open interest, it signals that the rally if being driven more by organic spot purchases, that speculative trading activity. More so, since the speculative trading activity is minimal, it reduces the risk of rapid breakdown below key support levels.

Hence, the bullish divergence between XRP price action and open interest in the last 48-hours suggests the rally may not be over yet.

XRP Price Forecast: Bulls Must Hold Steady above $0.61

Closing the week with over 18% XRP price has outperformed the global altcoin market average in the trading week between Sept 7 and Sept 14. With 18% price increase outpacing open interest growth of 5%, XRP price momentum remains firmly bullish the $0.65 area in the weeks ahead.

To validate the bullish narrative, technical indicators suggest that XRP price must first establish a steady support base above the $0.61 level.

XRP’s recent bullish momentum has pushed prices to $0.5906, signaling a potential continuation toward the $0.65 level. The Keltner Channel (KC), an indicator that helps identify trend direction and potential overbought or oversold conditions, shows XRP pushing against the upper boundary ($0.6064).

A breakout above this channel could trigger a move to $0.65. If price consolidates within the middle line ($0.5586), it would still indicate ongoing bullish pressure as long as $0.5586 remains intact.

Additionally, the Relative Strength Index (RSI), which measures the speed and change of price movements, shows a reading of 59.78. This places XRP just below overbought territory, but with room for further gains. If the RSI can push above 60, momentum could intensify, confirming the bullish bias. However, a drop below the 50-level would indicate weakening momentum and a possible retest of support at $0.5586.

For the bulls to maintain control, holding above $0.61 is crucial. This would set the stage for XRP to challenge the psychological $0.65 level in the near term. A failure to do so may see the price retreat to support near $0.55.