Current trend

The XRP/USD pair is trading around 0.5877: the instrument added about 8.5% in value after reports that Grayscale Investments launched an XRP-based trust after the first similar product was liquidated in 2021 due to a lawsuit by the U.S. Securities and Exchange Commission (SEC) against Ripple about the distribution of unregistered securities in the amount of 1.3 billion dollars. Like Grayscale Investments' earlier investment trusts, it is fully invested in the token underlying Ledger XRP (XRPL) decentralized technology. The management informed that the fund will have the same four-phase cycle: it is currently at the stage of private placement, after which the stage of public quotation will begin.

Rayhaneh Sharif-Askary, head of product and research at Grayscale Investments, said that it would help investors diversify investments beyond the first two leading cryptocurrencies by capitalization, in particular, facilitating cross-border transactions, which now take only a few seconds, and stressed that XRP has a high potential to change the traditional financial infrastructure. Many economists suggest that Grayscale Investments may eventually convert the trust into an ETF.

Tomorrow, the US Federal Reserve is expected to announce a reduction in the base interest rate: investors are actively adjusting their forecasts regarding the upcoming decision of the monetary authorities and now 67.0% of them are confident in reducing the cost of borrowing by 50 basis points, whereas a week ago the indicator was held around 34.0%, according to the readings of the Chicago Mercantile Exchange (CME) FedWatch Tool. Economists at some banks, including Goldman Sachs Group Inc., predict a 75 basis point reduction in borrowing costs during the three meetings to be held this year, while others expect more decisive steps, such as Citibank experts, for whom the basic option is a rate adjustment of -125 basis points. Recall that over the past 14 months, the key lending rate has remained at the highest level in the last 20 years in the range of 5.25–5.50%, in anticipation of improving economic conditions.

Support and resistance

The asset is trading within the "triangle" pattern with narrowing boundaries of 0.6000–0.5050, preparing for another attempt to test the resistance line.

Technical indicators are holding an unstable buy signal, which was received at the end of last week: the range of EMAs fluctuations on the Alligator indicator is expanding in the direction of growth, and the AO histogram is trading in a positive zone, forming new correction bars.

Resistance levels: 0.5990, 0.6580.

Support levels: 0.5700, 0.5050.

Trading tips

Long positions should be opened after the price has consolidated above the resistance level of 0.5990 with a target of 0.6580 and a stop-loss of 0.5900. Implementation period: 7 days and more.

Short positions should be opened after quotes are consolidated below the support level of 0.5700 with a target of 0.5050 and a stop-loss of 0.5800.