Will XRP Price Rise More Following Major Grayscale Announcement?

XRP has emerged as a winning bet for traders this week, primarily as it outperforms top cryptocurrencies, including Bitcoin (BTC) and Ethereum’s native token, Ether (ETH), due to a major Grayscale Investments update.

Grayscale’s XRP Trust Returns

Grayscale Investments officially launched its XRP Trust on Sep. 12, 2024, allowing accredited investors to gain exposure to the token. The token functions atop the XRP Ledger, which is designed to facilitate rapid cross-border financial transactions.

The announcement marked Grayscale’s re-entry into XRP after dissolving its previous XRP Trust in January 2021. It further appears after a favorable court ruling in July 2023 clarified that XRP sales on secondary markets do not constitute securities.

XRP’s price rallied by over 10% after the Grayscale announcement, reflecting renewed investor confidence in the token. Interestingly, the XRP price rally also appears due to anticipations that Grayscale will launch a potential XRP ETF in the future, further expanding retail investors’ access to XRP.​

Notably, XRP has largely underperformed the broader crypto market in 2024, falling by over 10.30% compared to the latter’s 25% gains. The underperformance was largely due to a pending status over Ripple’s $2 billion penalty to the SEC, which, in August, US District Judge Analisa Torres reduced to just $125 million.

That said, an underbought XRP has more room to grow than other cryptocurrencies, especially if traders decide to rotate capital out of profit-making assets.

XRP Eyes $0.60 Next

From a technical perspective, XRP is trading inside what appears to be a symmetrical triangle pattern.

As of Sep. 13, XRP had entered a rebound stage after testing the triangle’s lower trendline as support. That puts its next upside target near the pattern’s upper trendline resistance at $0.60.

The upcoming Federal Reserve rate decision on Sep. 19 may boost the upside scenario. Conversely, a decline below the lower trendline risks crashing the price toward the 0.236 Fibonacci retracement line at around $0.48.