Risk management firm FRMO Corp., XRP defends its bullish status in digital presence. As part of an investment strategy, FRMO has 62.84 Bitcoin (BTC), 34.98 Ethereum (ETH), 494, Litecoin (LTC), among others. Trader Michaël Van de Poppe has set a $ 0.30 zone as a support zone and a new maximum area if the price consolidates around $ 0.43.
A new corporate risk management firm is joining a wave of crypto adoption. FRMO Corp presented its shareholders with a document in which it defended its XRP digital presence and operating model as an optimal investment opportunity.
According to the document, the company became interested in cryptocurrencies 6 years ago. At the time, they determined that their investment in U.S. Treasuries would yield very low returns. This situation worsened for investors throughout 2020; not only did interest rates fall, but U.S. debt topped $ 26 trillion.
Therefore, the company determined that the crypto market offers the best opportunities. As such, they invested in the parent company of Digital Asset Management Fund Grayscale, Digital Currency Group. As a result, FRMO Corp’s initial investment showed a high and unexpected performance compared to initial estimates.
The company has a total of 62.84 Bitcoin (BTC), 34.89 Ethereum (ETH), 661.7 Ethereum Classic (etc), 2 Zcash, 494 Litecoin (LTC), 1.1 Bitcoin Cash (BCH). It also has a part in XRP. The FRMO believes these could present a unique opportunity for a “deflationary system” of digital presence. The document states:
XRP itself is one of the most intriguing currencies, as it is clearly deflationary. Trading on XRP actually has a modest cost that is not paid to any broker. The charge, which is a very small part of an XRP unit and is used to protect the network, is simply destroyed. Therefore, the number of XRP units is constantly increasing.
The FRMO notes that Xrpl, which XRP is working on, is a verification system that is “closed to outsiders”, unlike public blockchains. So they estimate it is a system with” significant yield potential.” The Risk management firm adds:
”IF THE TRADING SPEED OF THE XRP IS GREATLY INCREASED, THE NUMBER OF CURRENCIES IS GREATLY REDUCED, THUS CREATING A SIGNIFICANT RETURN EVEN IF THE COIN ITSELF HAS NOT EXPERIENCED AN INCREASE IN MARKET CAPITALIZATION. HOWEVER, IT WILL EXPERIENCE AN INCREASE IN VALUE PER UNIT.”
New all – time high price for XRP, basic levels
On the other hand, investor Michaël Van de Poppe published an analysis on the current state of the market and possible scenarios for XRP. In an article, Van de Poppe attributes the bull market to corporate participation and an impact of the upcoming airdrop of Flare Network’s Spark token for XRP.
In the short term, the trader believes there are indications that point to a correction. Therefore, he set the price as a significant support range of $ 0.24 to $ 0.30, as shown in the picture below. However, it shows that this is a positive for the formation of upward momentum. To do that, he believes, investors need to look at Bitcoin’s price performance. A downgrade or upswing marks the start of a rally for the Sunday as a whole, and raises the XRP to $ 1.
As reported by CNF, analysts such as Credible are equally bullish for crypto XRP. In their recent analysis, the trader noted that the digital asset could reach $ 25 or $ 30 in the next bullish cycle. Trusted crypto agrees with Van de Poppe on the importance of the relationship between XRP price and Bitcoin price performance.