XRP has long been a contentious asset in the crypto space, but recent developments might change the game for XRP holders. Grayscale, the world’s largest digital currency asset manager, just launched an XRP Trust, marking a significant step forward for the asset. While some might wonder if this is a classic case of “buy the rumor, sell the news,” the historical performance of altcoins after Grayscale trust launches suggests that XRP could be in for a major rally.
So, is it time to sell, or should you load up on XRP? Let’s break down why Grayscale’s XRP Trust could be the fuel needed to ignite a bullish breakout and take XRP to new highs.
What Is the Grayscale XRP Trust?
For those who might not be aware, Grayscale has made headlines before with its Bitcoin and Ethereum Trusts, which later evolved into ETFs after the company sued the SEC and won. Now, they’ve added XRP to their list of crypto products, a move that has already caused a price pump in the asset.
However, it’s important to note that a trust is different from an ETF. While ETFs are available to the general public, including retail investors, a trust is primarily open to accredited investors—those with a net worth of at least $1 million (excluding their primary residence) or an income of over $200,000 per year. This exclusivity means that large-scale investors can gain early exposure to XRP before it’s available to the masses through more accessible ETF products.
Grayscale’s Track Record: What Past Altcoin Trusts Tell Us About XRP’s Future
Historically, when Grayscale launches an altcoin trust, it tends to trigger significant price movements. Let’s take a look at a few examples of past Grayscale altcoin trust launches and how they impacted price performance.
-
Avalanche Trust (Launched August 2024)
After the launch of the Grayscale Avalanche Trust, Avalanche (AVAX) saw a 36% pump, while Bitcoin only managed a 12% increase. This suggests that altcoins typically outperform Bitcoin when these trust products are introduced. -
BitTensor Trust (Launched June 2024)
BitTensor (TAO) experienced an 85% surge just 15 days after its trust launch, while Bitcoin lagged behind with only a 25% pump during the same period. This reinforces the trend of altcoins outperforming Bitcoin after trust launches. -
SUI Trust (Launched August 2024)
The SUI Trust launch saw SUI skyrocket by 140% in just one week, compared to Bitcoin’s modest 21% gain. Again, this shows that altcoin trusts typically lead to significantly higher gains than their Bitcoin counterparts. -
MakerDAO Trust (Launched July 2024)
MakerDAO (MKR) also performed well post-launch, gaining 25% over 17 days compared to Bitcoin’s 18% gain during the same period. While this was a more modest overperformance, it still highlights the trend.
Why XRP Could Be Next for a Major Rally
Given this track record, the recent launch of the Grayscale XRP Trust could signal that XRP is about to follow the same pattern, outperforming Bitcoin and potentially rallying to new highs. XRP has already seen a positive price movement following the trust announcement, and this may just be the beginning.
Looking at XRP’s technical chart, we can see that it’s been stuck in a descending triangle since its all-time high in 2018. However, diminishing returns over the past few cycles suggest that XRP may be poised for a breakout. Historically, XRP’s price pumps have become smaller over time, but that doesn’t mean the coin is out of bullish momentum.
Here’s what the numbers tell us:
-
From its 2018 low to the next peak, XRP surged 1,400%.
-
During the next cycle, that pump was reduced to 700%.
-
If the trend continues and XRP experiences another halved pump, it would still see a 350% rally in the upcoming bull market.
This would bring XRP to approximately $2 per coin, which aligns with significant historical resistance and support levels.
Breaking Down XRP’s Price Potential: $2 Target in Sight
A 350% increase from XRP’s recent low would put it at around $2 per coin. This price target aligns with both technical analysis and fundamental factors, such as Grayscale’s involvement and the potential for increased institutional interest. However, breaking the $2 resistance won’t happen overnight.
We expect XRP to test this $2 level, encounter some pullbacks, and consolidate before making a full breakout. If XRP can break out of its long-standing triangle formation, it could finally begin a new bullish cycle, potentially outperforming Bitcoin in the process.
Should You Buy More XRP or Take Profits?
If you’ve been holding XRP for years and are getting impatient, it’s understandable. XRP has been notoriously slow in breaking key levels of resistance, leading to frustration among long-term holders. However, history shows that Grayscale’s altcoin trusts typically lead to significant gains over time.
With XRP already showing strength after the trust launch, the smart move for long-term investors may be to hold on and wait for the breakout. If you’re looking for a price target, $2 seems like the next logical resistance level where XRP may face some selling pressure. But if XRP can break through, the sky could be the limit in the next bull cycle.
Conclusion: The Future Looks Bright for XRP
Grayscale’s involvement with XRP through their trust is a massive signal that institutional interest in XRP is growing. Historically, Grayscale trusts have led to significant altcoin outperformance, and XRP appears to be on the same path. While there may be some short-term volatility, the long-term outlook for XRP is incredibly bullish, with a potential 350% rally on the horizon.
If you’re already invested in XRP, the key is patience. The fundamentals are stronger than ever, and with Grayscale leading the way, XRP could soon break out of its long-held resistance levels and head toward new highs.
