XRP price rose above the important resistance at $2.5 after Ripple Labs concluded the Hidden Road buyout and after the US published an encouraging inflation report. Ripple was trading a $2.5, up sharply from this month’s low of $1.7775.
XRP Price Analysis as Ripple Closes Hidden Road Buyout
The XRP price held steady in the past few weeks, moving from a low of $1.7775 on October 11 to $2.53 today. One potential catalyst for the ongoing rally is that Ripple Labs completed the Hidden Road buyout.
Hidden Road, which offers prime brokerage services, will now be called Ripple Prime. This is a major platform that handles over $10 billion in transactions a day.
Following the acquisition, Ripple hopes to incorporate its XRP Ledger to the network. It also hopes to introduce the RLUSD stablecoin in the platform, which may help to boost its assets.
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The deal closed a week after Ripple announced the GTreasury buyout in deal valued at over $1 billion. This buyout brings in a company that handles billions of dollars for companies. Some of these funds will leverage the speed and low cost of the RLUSD stablecoin.
RLUSD stablecoin has grown rapidly in the past few months, with its assets nearing the $1 billion milestone. In addition to Hidden Road and GTreasury deal, this growth will benefit from the recent Rail buyout. Rail is a company that makes it easy for users to send stablecoins.
The XRP price will benefit in all this by having an improved reputation and by seeing more activity in the XRP Ledger. This, in turn, could lead to a comeback of the XRP burn rate.
XRP price also jumped because of the encouraging US inflation data, which raised the possibility that the Federal Reserve will cut interest rates next week. Also, the notional amount of XRP futures traded on CME has jumped to over $26 billion. The recently XXRP ETF has crossed the $100 million milestone.
Ripple Price Technical Analysis
XRP price chart | Source: TradingView
The daily chart shows that the XRP price has rebounded from a low of $1.7775 this month to $2.55. It has formed a small inverse head-and-shoulders pattern, which is a common bullish reversal sign.
Ripple price is about to avoid the risky death cross pattern, which happens when the 50-day and 200-day moving averages cross each other. Avoiding this pattern will be bullish for the token, and may see it jump to the key psychological level at $3. A drop below the head section at $2.2 will invalidate the bullish XRP price forecast.
