Why is the XRP Price up 7% today? Is $40 near?

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As a seasoned crypto investor with a decade of experience navigating the digital currency market, I’ve witnessed my fair share of ups and downs. The XRP rollercoaster ride has been one of the most intriguing journeys for me, given its continuous resilience in the face of adversity. Despite the ongoing Ripple vs SEC lawsuit, it has managed to cling to a spot among the top 10 cryptocurrencies.

The XRP price performance has been the talk of the market since the beginning. More importantly, XRP is among the top 10 cryptocurrencies in the market despite its continuous poor performance amid the Ripple vs SEC lawsuit, which began in 2020. Due to the SEC’s claims of XRP being a security and failing to adhere to the securities restrictions, the price has struggled heavily. From trading at $3.84 at its peak to rambling around an average of $0.5, this token has missed many milestones. But the sudden spikes, including today, where the XRP price has surged 7% after the XRP ETF news created a possibility of significant recovery.

XRP Price Jumped 7% After Grayscale XRP Trust Launch

As an analyst, I’ve just learned that the well-known investment company, Grayscale, has reintroduced their Grayscale XRP Trust. With this offering, individuals like myself can delve into the world of XRP and investigate this digital token, all while avoiding the initial risk associated with directly purchasing cryptocurrency.

We’re thrilled to unveil our latest venture – a unique cryptocurrency investment fund focused on a single asset, named Grayscale XRP Trust. This fund can be obtained via a private offering.
Available to eligible accredited investors.
Read the press release:
— Grayscale (@Grayscale) September 12, 2024

In response to the SEC’s lawsuits, the international asset management company liquidated its first XRP investment fund in 2021. At that point, it also sold all of its XRP assets and dissolved the XRP trust because investors were finding it increasingly challenging to convert their XRP holdings into US dollars.

With the restart, Grayscale’s involvement in the network is evidently increasing. Notably, this suggests that the Ripple vs SEC lawsuit might be reaching a conclusion. Consequently, the price of Ripple has escalated to $0.5717 following a 7% rise today. Furthermore, there’s been an uptick in user interest towards this token, which correlates with its trading value increasing by 110%, currently standing at $1,778,119,721.

Moreover, this situation might pave the path for an XRP-based Exchange Traded Fund (ETF), considering the success of Bitcoin and Ethereum ETF’s. However, the market momentum has temporarily stalled for these two, but their high demand suggests they will pick up soon. In contrast, a Bloomberg analyst interprets the $1.2 Billion in outflows from the Bitcoin ETF as a shift in trends rather than a threat.

Supporters are hoping for a transformation of the XRP trust into an XRP-based ETF similar to how Grayscale handled Bitcoin and Ether. As of now, the platform has not made any such announcements.

Is $40 The Next Target For the XRP Price?

Despite experiencing considerable decreases in value over an extended period, there have been instances when users observe a substantial increase in value, which has occasionally resulted in small profits. However, these gains were fleeting and did not last, primarily due to the rapid selling by the holder. Today could be one of those times where fresh Ripple news is causing temporary spikes.

Even though the ongoing XRP lawsuit is nearly concluded with Ripple being asked to pay a $125 million settlement by the judge, numerous analysts are optimistic that this could drive up the value of Ripple. Among these analysts, Steph Crypto predicts that the price of XRP may soar to $40 within the following weeks.

According to his prediction, XRP‘s charts are forming a “larger reversed head and shoulders” pattern, potentially leading to a price spike towards $1.11. Furthermore, the monthly charts suggest that XRP could reach $40 in the coming weeks due to a distinctive symmetrical triangle formation. However, it is important to note that he has also cautioned investors about the volatile nature of the market. Additionally, with Ripple transferring 150 million coins, increased selling pressure could potentially reverse the current upward trend into a downward trend.

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2024-09-13 12:04