The bad news seem to have no end for XRP holders as the giant Bitcoin Trust Fund, Grayscale just announced it will exclude XRP from its portfolio. The digital asset plunged by 6% following the announcement from a high of $0.232 down to $0.217. However, bulls did aggressively buy the dip and managed to push XRP back to $0.231.
3/ $XRP was removed following DLC Fund's Quarterly Review (12/31/20). No others assets qualified for inclusion. The below table highlights DLC Fund’s weightings as of January 4, 2021: $BTC $ETH $BCH $LTC pic.twitter.com/g3QQEf0kd8
— Grayscale (@Grayscale) January 5, 2021
One of the main reasons for the lack of bearish continuation was all the rumors about Grayscale excluding XRP before it happened. Many investors and analysts thought it would happen soon and it seems that XRP holders are prepared for future exchange delistings as well, which means these are most likely priced in already unless a massive exchange like Binance delists XRP.
XRP price remains relatively stable which shows how strong the community is
Some view the XRP community as a strong group of holders, others as delusional investors. Nonetheless, they are certainly showing that they are willing to hold XRP despite perhaps the worst-case scenario. No one knows if XRP will be victorious against the SEC or how long it will even take for a final decision.
However, it seems that XRP price has established a robust support level at around $0.21 and the psychological level at $0.20. Despite the strong base level established, it’s hard to see new investors joining in until the SEC makes a final decision.
Many large holders have left the XRP network in the past three weeks. The number of whales holding between 1,000,000 and 10,000,000 coins has dropped by more than 200 in the past two months. Even worse, the number of whales with at least 10,000,000 coins plummeted on December 25 from a high of 356 to 309 currently.
XRP bulls need to decisively hold the $0.21 support level and continuation above it. A breakout above $0.25 would be ideal and could quickly push XRP price towards $0.3. However, this scenario is not very likely, as again, there is a lot of selling pressure and new investors are not willing to buy.