Ripple announced the completion of the Hidden Road acquisition, rebranded as Ripple Prime, sending XRP above the crucial $2.5 level.
The news followed Ripple’s recent $1 billion acquisition of GTreasury, and Ripple-backed Evernorth’s plans to raise over $1 billion to build an XRP treasury reserve. Ripple Prime is expected to fuel XRP utilization, potentially creating a perfect storm as Ripple’s expansion into Main Street gains traction.
Friday’s announcement came at a critical time for XRP, which had been under selling pressure due to the US government shutdown and rising US-China trade tensions. Crucially, the US Senate impasse has put the highly anticipated launch of XRP-spot ETFs on ice, delaying much-needed institutional money inflows.
Ripple issued a press release announcing the completion and rebranding of Hidden Road, stating:
“We’re pleased to share that our acquisition of Hidden Road is officially complete, making Ripple the first crypto company to own and operate a global, multi-asset prime broker – bringing the promise of digital assets to institutional customers at scale.”
Product offerings include clearing, derivatives, digital assets, financing across FX, fixed income, prime brokerage, and swaps.
Newly branded Ripple Prime could boost XRP utilization, tipping the supply-demand balance firmly in XRP’s favor. Ripple addressed any uncertainty about whether the Hidden Road acquisition would drive XRP utility, stating:
“Ripple’s foundational digital asset infrastructure across payments, crypto custody and stablecoin, as well as the use of XRP, will complement the services offered within Ripple Prime. Ripple Prime will look to leverage blockchain capabilities in its business to streamline operations and optimize costs.”
The completion of the Hidden Road deal is expected to further legitimize XRP, given its expected utilization.
Ripple CEO Brad Garlinghouse highlighted Ripple’s recent deals and underscored XRP’s central role, stating:
“With today’s close of Hidden Road (now Ripple Prime), Ripple has announced 5 major acquisitions in ~2 years (GTreasury last week, Rail in August, Standard Custody in 2024, Metaco in 2023). As we continue to build solutions towards enabling an Internet of Value – I’m reminding you all that XRP sits at the center of everything Ripple does. Lock in.”
Ripple President Monica Long echoed Brad Garlinghouse’s comments, saying that Ripple Prime will look to utilize XRP in multiple ways.
The resolution of the SEC vs. Ripple case has been pivotal, allowing Ripple to expand into Main Street, spotlighting XRP. While XRP has soared 130% since SEC Chair Gary Gensler’s resignation, the token has dropped 18% since the US Court of Appeals approved Ripple and the SEC’s appeal withdrawals.
However, XRP could potentially reverse the losses given the token’s utility outlook, which could align with the eventual launch of XRP-spot ETFs once approvals resume. The US government shutdown entered day 25, on Saturday, October 25, with no resolution in sight. The shutdown leaves the SEC with a skeleton staff, delaying reviews and approvals, including those for crypto-spot ETFs.
Importantly, six of the seven XRP-spot ETF final decision deadlines have passed because of the shutdown. 21Shares, Bitwise, Canary Capital, CoinShares, Grayscale, and WisdomTree had deadlines ranging from October 18 to October 25.
The absence of sticky institutional money has left the token with heavy losses in October compared to Bitcoin (BTC) and Ethereum (ETH). BTC-spot and ETH-spot ETF inflows sent BTC to an all-time high of $125,761 and ETH to a record high of $4,958, underscoring the influence of institutional demand on price trends. XRP is down 10.7% in October, while BTC and ETH have posted more modest losses of 2.67% and 5.15%, respectively.
For context, BTC-spot ETFs have reported total net inflows of $26.6 billion year-to-date, potentially surpassing $37.8 billion in calendar year 2024.
XRP rallied 4.84% on Friday, October 24, reversing the previous day’s 1.22% loss to close at $2.5108. The token outperformed the broader crypto market, which rose 1.09%. Despite Friday’s rally, XRP remained below the 50-day and 200-day Exponential Moving Averages (EMAs), reaffirming a bearish bias.
Key technical levels to watch include:
In the coming sessions, several events could influence near-term price trends:
Bearish Scenario: Risks Below $2.5
These bearish events could push XRP toward the $2.5 level. A break below $2.5 may bring the $2.35 support level into play. If breached, $2.2 would be the next key support level.
Bullish Scenario: Path to $3
These bullish scenarios could send XRP toward the $2.62 level. A sustained move through $2.62 would bring the $3.0 psychological level into play.
XRP’s near-term price outlook hinges on developments on Capitol Hill. A continued stalemate would further delay XRP-spot ETF launches, limiting gains.
Meanwhile, rising institutional demand and token utilization may provide price support.
However, traders should closely monitor US-China trade developments. While a trade deal could lift sentiment, stalled trade talks may trigger a flight-to-safety, weighing on XRP.
With over 28 years of experience in the financial industry, Bob has worked with various global rating agencies and multinational banks. Currently he is covering currencies, commodities, alternative asset classes and global equities, focusing mostly on European and Asian markets.
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