XRP jumped to over $3 on Oct 2, pushing up 3.3% in the last 24 hours to trade at the level of $3.04. The market cap of the token now stands at $181.8 billion, and it has a 24-hour trading volume of over $6.1 billion.
XRP has surged in the past few sessions, climbing nearly 10% this week. The bullish sentiment for XRP is likely due to a treasury announcement made on Oct. 1.
XRP treasury
The breakout came from VivoPower International (NASDAQ: VVPR), as the company announced an additional closing of its $19 million equity raise, priced at a premium to the market $6.05 per share. The funds raised will be put towards scaling their enterprise and XRP digital asset treasury operations, as well as paying off debt.
Sustainable energy solutions company VivoPower has been refashioned as a “digital treasury” firm, with XRP at the center of its new strategy. The company says that the shift is intended to increase long-term ownership, to encourage investment in the XRP Ledger ecosystem, and expand blockchain-based applications.
VivoPower, formed in 2014 and listed on Nasdaq since 2016, operates in the UK, Australia, North America, Europe, the Middle East, and Southeast Asia.
The announcement was a notable feat for a Nasdaq-traded corporation to make XRP a core part of its money reserve policy. Some market observers think this lends credibility to XRP with institutions, further strengthening the asset’s narrative of continued adoption.
Technical set-up suggests caution
XRP’s rise to $3 on technical charts came in line with earlier Elliott Wave analysis, which noted a move towards the Fibonacci extension levels of $2.99 – $3.00.
Independent traders had flagged this resistance area earlier in the week, with CasiTrades on X cautioning followers today not to “buy into the breakout” until XRP confirms support near $2.99.
Momentum indicators indicate XRP may be reaching overbought territory, so there is the possibility of retesting lower support levels in the $2.78 – $2.85 area.
Now that messaging for institutional adoption is fairly strong and retail optimism is in play, XRP’s near-term price action will largely depend on whether it can maintain a price above $3.
A strong close above $3 could open up higher Fibonacci targets. The current price is nearly 20% away from its all-time high of $3.84, which it reached in January of 2018.
