XRP traded near $1.28 during Monday's session even as a major institutional development landed on the XRP Ledger: Aviva Investors has launched a second tokenized fund in partnership with Ripple. The asset manager announced a £50 million allocation to tokenized shares of its Sterling Liquidity Fund on Oct. 26 (announcement on X).

The outlook for the token remains bearish, however. Analysts continued to monitor downside risks after XRP lost its short-term moving averages, with $1.248 identified as the next support and a potential slide toward $1 if sellers maintain control.

Aviva Launches Tokenized Shares in £22 Billion Sterling Fund

Aviva Investors introduced the new share class on October 26 through its partnership with Ripple. The Sterling Liquidity Fund manages approximately £22 billion, making it the firm's largest investment fund. Aviva's £50 million allocation goes into the tokenized share class, while the broader portfolio continues to operate through its existing structure.

The announcement concerns digital ownership of fund shares rather than an institutional purchase of XRP. The new class gives eligible investors a way to hold shares without changing the fund's underlying investments. That distinction matters for anyone tracking the token: the launch broadens institutional use of the ledger without directly adding demand for XRP itself.

The Ireland-domiciled fund launched in 2002 and operates under UCITS money market rules. Its portfolio holds high-grade, short-term debt instruments denominated in pounds sterling. Investors receive the same investment objectives, risk profile, daily liquidity, and regulatory protections as holders of conventional shares.

Ripple Partnership Extends to Second Money Market Fund

Aviva first introduced a tokenized share class for its US dollar liquidity fund in July. The sterling launch brings combined investments across the two offerings above £86 million, placing Aviva among Europe's largest providers of tokenized money market funds based on disclosed holdings.

The companies began working together in February to develop blockchain-based access to traditional investment products (The Market Periodical). Aviva Investors CEO Mark Versey said the firm plans to keep exploring fund tokenization with Ripple.

The sterling product uses a digital twin structure: blockchain records represent investors' shares, while the underlying assets remain in the conventional fund. BNY Mellon holds those assets, Komainu supports institutional digital asset custody, and Licuido supplies the tokenization infrastructure. Eligible investors need digital wallets to access the share class.

Ripple says its network has processed more than four billion transactions since 2012 and has more than 130 independent validators.

Will XRP Price Drop Toward $1?

XRP continues to trade below its 20-day and 50-day exponential moving averages following a bearish crossover on October 19, when the 20-day EMA crossed beneath the 50-day EMA to form a death cross. A similar crossover in May preceded a 30% price decline through August.

The latest XRP price prediction from ChartNord (shared on X) shows the token struggling to recover above both moving averages while trading near $128. Further downside could bring the $1.248 support level into focus, and a break below it would expose a fair value gap between $1.00 and $1.25.

Analyst 360Trader identified $1.00 as a potential downside target (his X post), with the lower price range also serving as an area for possible accumulation. The recent decline has brought the price closer to this zone, although XRP has yet to confirm a breakdown below $1.248.

On the upside, XRP faces resistance between $1.35 and $1.55, where previous trading activity was concentrated. Another fair value gap sits between $1.40 and $1.48, and a recovery above these levels would move the price back into its previous trading range.

For now, XRP remains below its short-term moving averages, leaving $1.248 as the next support level to watch. Away from the charts, Aviva's stated plan to keep exploring fund tokenization with Ripple leaves the door open to further tokenized share classes, a development thread to monitor alongside these price levels.

This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry substantial volatility and potential losses. Readers should conduct independent research before investing.

This article was first published on The Market Periodical.