The energy company listed on the stock market Vivopower invests $ 121 million in XRP as a strategic reserve, making it the first company in the world with a Treasury focused on XRP.
At the same time, the XRP price oscillates around the critical level of $ 2.29. Can this institutional support increase the price or a breakdown is looming?
Vivopower bet on XRP as a reserve
The energy company Vivopower has announced that it had entered into an agreement with investors for a private equity investment. In total, 20 million shares were issued at an average price of $ 6 each, generating approximately $ 121 million in the company.
The investment was led by his Royal Highness, Prince Abdulaziz Bin Turki Abdulaziz Al Saud, president of the eleventh holding.
“We are honored to lead this capital for a company that will be the first in the world to execute on an XRP–On Wednesday, the treasury strategy concentrated, “said Prince Abdulaziz in a press release.
Vivopower said that the majority of funds collected will be used to buy Ripple, as part of a wider strategy to build an XRP reserve. This is the first time that a listed company has launched such a strategy.
“As a long-term holder of XRP myself, we all share a common vision and objectives with regard to the way in which a listed XRP business company can be set up for the XRP community and the stakeholders of Vivopower,” said Kevin Chin, Executive President of Vivopower.
The completion of the capital cycle will depend on various factors determined by the company.
Adam Traidman, former member of the board of directors of Ripple and CEO of SBI Ripple Asia, joined Vivopower as president of the Advisory Council.
Development is part of a broader trend in the growing institutional interest for digital assets. More and more companies adopt cryptocurrencies as primary reserve assets. XRP now joins Bitcoin, Ethereum and Solana as strategic reserves on business balance sheets.
Despite the news, XRP has dropped by almost 2% in the last 24 hours, extending its weekly loss to more than 5%. But what does price prospects look like for XRP?
Will Ripple increase?
The XRP price is currently in a precarious situation: the level of psychological price of $ 2 is under pressure. On the daily graphic, XRP oscillates just above two crucial mobile averages: the 50-day EMA and the EMA of 100 days, both of about $ 2.28.
In the technical analysis, these averages are generally considered to be strong support lines, but for the moment they are more like a walk on the rope for XRP.
A potential life buoy is in sight: the EMA 50 approaches a crossing above the 100 EMA, a so-called “golden cross”. This model often signals a reversal of the bull market.
If this crossover is confirmed, it could give XRP the momentum to break the resistance at $ 2.50 and possibly test $ 3.
But it is far from certain. Due to the low volume of trading, additional volatility is looming after a potential escape – or a breakdown. If Ripple does not maintain these EMAs as a support, a quick drop below the $ 2 threatening brand.
For optimistic merchants, it would be a major disappointment and could also confirm a loss of momentum in mid-term.
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