- XRP currently makes up more than 1% of the Grayscale Large Cap Fund portfolio.
- Polygon continues to fall after the market crash.
Grayscale recently adjusted its broad portfolio of funds by adding and removing certain digital assets. Ripple (XRP) and Polygon (MATIC) participated in this rebalancing. What role did they play?
XRP input, MATIC output
According to recent X (formerly Twitter) updates, Grayscale Investments, the manager of the Grayscale Digital Large Cap Fund, conducted a portfolio review. The review included a rebalancing of digital assets within the fund.
According to the document, MATIC was removed from the fund while XRP was added. The remaining assets in the portfolio included Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Solana (SOL), and Avalanche (AVAX).
Bitcoin made up over 69% of the portfolio, Ethereum made up 21.9%, and XRP made up over 1%.
Has XRP reacted to the development?
Recent adjustments to the Grayscale portfolio, particularly the addition of XRP, have not affected the price trend of XRP, AMBCrypto said.
Looking closely at the chart, we see that there have only been two price increases for XRP since the beginning of 2024.
Source: Trading View
At the time of this writing, AMBCrypto notes that XRP is trading at around $0.56 after two straight days of declines. As a result, it broke away from the $0.6 price range that had been maintained so far.
teaThe continued price decline has pushed XRP deeper into a bearish trend, as evidenced by the Relative Strength Index (RSI). At the time of writing, it is below 40, indicating a strong bearish trend.
Grayscale’s decision to include XRP in its portfolio despite its continued decline was based on anticipation of a potential future price surge.
Although XRP has not risen significantly compared to other assets, there is optimism that it may experience a rebound in the new year.
polygons in decline
Like XRP, MATIC has struggled to maintain a favorable price trend since the start of the new year. The daily timeframe chart shows a decline of over 13% on January 3rd.
Despite follow-up efforts, Polygon struggled to regain positive momentum as its price fell. At the time of writing, it was trading at around $0.8, experiencing a further decline of over 4%.
Read Ripple (XRP) Price Prediction for 2024-25
The latest decline comes after the stock fell nearly 8% over the past two days.
Source: Trading View
The recent decline has taken Polygon below its short-term moving average (yellow line), indicating a less positive trend in the price at the time of press. Additionally, the RSI line is approaching 40, indicating a strong bearish trend.