Ripple (XRP) is still under pressure as buyers remain elusive following its 40% retreat from the year-to-date high. XRP price has found a strong support at $2 despite numerous catalysts like the rising ETF approval odds and the potential Fed cuts. So, will a new $10 billion catalyst boost its value, potentially to $5?
XRP Price Could Benefit From Hidden Road’s Transactions
One of the biggest crypto news of this week was Ripple Labs acquisition of Hidden Road in a $1.5 billion deal. Its price tag makes it one of the biggest acquisitions in the crypto industry.
The XRP price reacted mildly to this buyout, perhaps because market participants are unaware of its implication for Ripple and its token. That’s because Hidden Road operates in an obscure field in finance where it provides prime brokerage, clearing, and financing solutions to institutional investors.
A potential implication of this deal to XRP is that Ripple Labs may decide to integrate its technology to the XRP Ledger. In a statement, David Schwartz clarified this, saying that there was a likelihood that Hidden Road’s $10 billion a day transactions will move to the Ledger.
Such a move would dramatically increase the volume of transactions on the ledger, boosting the XRP price. That’s because it would transform Ripple into one of the biggest infrastructure plays in the crypto industry.
On top of this, Ripple’s plans to become an alternative to SWIFT will also boost the XRP Ledger and its price. These hopes have become more pronounced after the SEC ended its case against the company. It has made it easier for Ripple to do deals with other companies, especially those in the US.
Ripple Technical Analysis: A Path to $5 Exists
From the weekly chart, we see that the XRP price has lost the momentum it had in November last year when it went parabolic. The 42% crash to the current support of $2 has been painful to many holders. However, history shows that these pullbacks are common. For example, the coin dropped by 52% from its highest point in July 2023 and the lowest point in August of that year.
The silver lining of the XRP price crash is that it has remained above the 61.8% retracement level. It is also hovering at the key point that was its highest level in 2021. XRP also remains above the 50-week moving average.
Therefore, a bullish breakout in 2025 cannot be ruled out. If this happens, the most important Ripple price target will be the year-to-date high of $3.4. A move above that level will signal more gains, potentially to $5, as some analysts predict.
However, a break below the crucial support level at $1.4912, will cancel the bullish outlook and point to more downside.
Frequently Asked Questions (FAQs)
There is a likelihood that the XRP price will jump to $5 in the long term. This outlook will become clearer if the coin jumps above the key resistance at $3.4.
This purchase means that Ripple can move the $10 billion transactions a day to the XRP Ledger, which would be a bullish catalyst for the coin.
It is hard to predict when Ripple will soar to $10 because this performance will depend on numerous catalysts like the crypto performance and the Fed.
crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/xrp-price-wavers-at-2-can-a-new-10-billion-catalyst-push-it-to-5/
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