VivoPower, a publicly traded energy firm, is making headlines with its substantial investment of $121 million in XRP, positioning itself as the first company globally to establish an XRP-centric treasury.
As this significant development unfolds, the price of XRP is currently teetering around the key $2.29 mark. This raises the question: will institutional endorsement propel the price upward, or is a decline on the horizon?
VivoPower embraces XRP as a treasury reserve
In a recent announcement, VivoPower revealed it has secured a private placement of shares with investors. The transaction involved the issuance of 20 million shares at an average price of $6, yielding approximately $121 million for the company.
Leading the investment initiative is His Royal Highness Prince Abdulaziz bin Turki Abdulaziz Al Saud, the chairman of Eleventh Holding.
“We are privileged to lead this capital-raising endeavor for a pioneering company implementing an XRP-focused treasury strategy,” Prince Abdulaziz stated in a press release on Wednesday.
VivoPower indicated that a significant portion of the funds raised is earmarked for acquiring Ripple, as part of its broader strategy to establish an XRP reserve. This marks a groundbreaking move, as it is the first time a publicly traded company has adopted such an approach.
“As a long-term holder of XRP myself, we all share a unified vision regarding how a publicly listed XRP-focused treasury can be developed to benefit both the XRP community and VivoPower stakeholders,” commented Kevin Chin, Executive Chairman of VivoPower.
The successful completion of this capital round hinges on several company-determined factors.
In another notable development, Adam Traidman, former board member of Ripple and CEO of SBI Ripple Asia, has been appointed as the Chairman of the Advisory Board at VivoPower.
This move aligns with a growing trend of institutional interest in digital currencies, as an increasing number of corporations consider cryptocurrencies as primary reserve assets. XRP is now joining the ranks of Bitcoin, Ethereum, and Solana as strategic reserves within corporate financial portfolios.
Despite this optimistic news, XRP experienced a near 2% decline over the past 24 hours, leading to a more than 5% loss for the week. This brings into focus the future price trajectory of XRP.
Is XRP poised for a rise?
The price of XRP currently finds itself in a delicate position, with the pivotal psychological threshold of $2 facing pressure. Analyzing daily charts reveals that XRP is positioned just above two critical Moving Averages—the 50-day EMA and the 100-day EMA—both situated near $2.28.
Typically, these averages serve as reliable support levels in technical analysis; however, they now represent a precarious balancing act for XRP.
A potential glimmer of hope lies ahead: the 50 EMA is nearing a crossover above the 100 EMA, indicating the formation of a “golden cross.” Such a pattern is often perceived as a bullish signal for market reversal.
Should this crossover materialize, XRP could gain the necessary momentum to surpass the $2.50 resistance, possibly aiming to test the $3 level again.
Nonetheless, this outcome is uncertain. With trading volumes remaining low, heightened volatility may follow a potential breakout—or breakdown. Should Ripple fail to uphold these EMAs as support, a quick fall below the $2 mark could become a reality.
For optimistic traders, this scenario would pose a significant setback and might ultimately reflect a loss of midterm momentum.
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