Ripple Acquires Hidden Road for $1.5 Billion, XRP Price Reacts Mildly

Ripple (XRP) has been under significant pressure as buyers remain scarce following a 40% retreat from its year-to-date high. Despite numerous catalysts such as rising ETF approval odds and potential Fed cuts, the XRP price has found strong support at $2. The question remains: can a new $10 billion catalyst boost its value to $5?

One of the most significant developments this week was Ripple Labs' acquisition of Hidden Road in a $1.5 billion deal. This acquisition is one of the largest in the crypto industry. The XRP price reacted mildly to this buyout, possibly because market participants are unaware of its implications for Ripple and its token. Hidden Road operates in a specialized field within finance, providing prime brokerage, clearing, and financing solutions to institutional investors.

A potential implication of this deal for XRP is that Ripple Labs may decide to integrate Hidden Road’s technology into the XRP Ledger. David Schwartz, a key figure at Ripple, suggested that there is 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, potentially boosting the XRP price. This would transform Ripple into one of the biggest infrastructure plays in the crypto industry.

Additionally, Ripple’s plans to become an alternative to SWIFT will further boost the XRP Ledger and its price. These hopes have become more pronounced after the SEC ended its case against the company, making it easier for Ripple to do deals with other companies, especially those in the US.

From a technical analysis perspective, 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 for many holders. However, history shows that these pullbacks are common. For example, the coin dropped by 52% from its highest point in July 2023 to its 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. The likelihood of the XRP price jumping to $5 in the long term will become clearer if the coin jumps above the key resistance at $3.4. 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.