- XRP surges past $3, fueled by VivoPower’s strategic announcement.
- Institutional interest boosts XRP as VivoPower integrates it into treasury.
- Technical indicators suggest caution despite XRP’s impressive price movement.
XRP surged past the $3 mark on October 2, marking a 3.3% increase in just 24 hours. At the time of writing, XRP trades at $3.04, with its market capitalization reaching $181.8 billion and a 24-hour trading volume surpassing $6.1 billion. This recent spike comes as part of an impressive rally, with XRP up nearly 10% this week. But what’s driving this significant price movement?
The latest price surge is largely attributed to a major announcement from VivoPower International, a sustainable energy firm. On October 1, VivoPower disclosed the successful completion of a $19 million equity raise, priced at $6.05 per share.
The funds raised will be allocated to scaling VivoPower’s XRP digital asset treasury and paying off existing debt. This announcement has contributed significantly to the growing bullish sentiment around XRP.
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Institutional Interest Drives XRP’s Bullish Momentum
VivoPower’s strategic pivot towards incorporating XRP into its digital treasury marks a noteworthy milestone for the token. The company has rebranded itself as a “digital treasury” firm, with XRP at the center of its long-term investment strategy.
By doing so, VivoPower aims to encourage investment in the XRP Ledger ecosystem and expand blockchain-based applications. This move signals increased institutional interest in XRP, bolstering its credibility within the financial world.
The decision to add XRP to its balance sheet, especially for a Nasdaq-listed company like VivoPower, brings new legitimacy to the digital asset. XRP’s role as a core part of VivoPower’s treasury operations could pave the way for further institutional adoption, offering new investment opportunities for both retail and corporate investors.
Caution Advised as Technical Indicators Signal Potential Resistance
Despite the excitement surrounding XRP’s recent performance, technical indicators suggest that traders proceed with caution. XRP’s rise to $3 is in line with earlier predictions from Elliott Wave analysis, which suggested a move toward Fibonacci extension levels around $2.99 and $3.00.
This resistance zone was previously flagged by independent traders, with some urging caution before buying into the breakout.
Additionally, momentum indicators like the Relative Strength Index (RSI) indicate that XRP is nearing overbought territory, raising the likelihood of a price pullback. If XRP fails to maintain its price above $3, the token could retest lower support levels in the range of $2.78 to $2.85. Traders will be monitoring for confirmation of support at these levels before making further decisions.
Source: Tradingview
With XRP’s price now hovering around $3, its near-term price action will depend on its ability to sustain this level. A strong close above $3 could open the door to higher targets, but the token remains approximately 20% away from its all-time high of $3.84.
As market sentiment remains positive, XRP’s future price movements will likely be shaped by both technical factors and continued institutional interest.
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