- XRP now makes up more than 1% of the Grayscale portfolio of major funds.
- Polygon continues to decline after the market crash.
Grayscale recently adjusted its extensive fund portfolio by adding and removing certain digital assets. Ripple [XRP] and Polygon [MATIC] were involved in this rebalancing, but what role did they play?
XRP in, MATIC out
According to a recent update on X (formerly Twitter)Grayscale Investments, the manager of the Grayscale Digital Large Cap Fund, has conducted a portfolio review. The review included rebalancing the 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 include Bitcoin [BTC]Ethereum [ETH]Cardano [ADA]Solana [SOL]and Avalanche [AVAX].
Bitcoin made up over 69% of the portfolio, Ethereum accounted for 21.9% and XRP represented over 1%.
Has XRP reacted to the development?
The recent adjustment to Grayscale’s portfolio, specifically the addition of XRP, had no impact on XRP price developments, AMBCrypto found.
A closer look at the chart revealed that XRP has only experienced two instances of price appreciation since the beginning of 2024.
Source: trading view
At the time of writing, AMBCrypto noted that XRP was in its second straight day of decline, trading around $0.56. This broke out of the $0.6 price range it had maintained.
TThe continued price decline has pushed XRP deeper into a bear trend, as shown by the Relative Strength Index (RSI). At the time of writing, the price was below 40, indicating a strong bearish trend.
Despite the continued decline, Grayscale’s decision to include XRP in its portfolio is based on anticipating a possible future price increase.
Although XRP did not see a significant increase compared to other assets, there is optimism that it could see a rally in the new year.
Polygon on a downward trend
Like XRP, MATIC has faced challenges in maintaining favorable price trends since the start of the new year. The daily timetable chart shows a notable drop on January 3, a drop of over 13%.
Despite subsequent efforts, Polygon has struggled to regain positive momentum as its price fell. At the time of writing, the price was trading around $0.8, with an additional decline of over 4%.
Read Ripple’s [XRP] Price forecast 2024-25
This recent dip translated into a loss of almost 8% over the past two days.
Source: trading view
The recent decline has caused Polygon to fall below the short-term moving average (yellow line), indicating a less positive trend in the price at the time of writing. Moreover, the RSI line approached 40, indicating a strong bearish trend.
