• Ripple announced it would be acquiring Fortress Trust, a company it has been a minor investor in since 2022.
  • The payment processor aims to become a one-stop shop for enterprises looking for blockchain solutions with this acquisition.
  • XRP is failing to gain traction in the market, losing nearly the entirety of its July rally.

Ripple has a dominant presence in the market when it comes to crypto payment processors. The platform is already establishing users in multiple parts of the world and continues to expand unbothered by the conditions of the market. 

Ripple reaches Nevada

Ripple on Friday announced that it was moving forward with the decision to acquire Fortress Trust, a licensed Web3 financial, regulatory and technology infrastructure provider for blockchain innovators.

As stated by the payment processor, Fortress Trust’s presence in the enterprise crypto market serves as the primary motivation for Ripple’s acquisition. By bringing the infrastructure provider firm under its wing, Ripple would be taking another step towards its goal of becoming a one-stop shop for enterprises looking for blockchain solutions. 

Furthermore, the acquisition also adds another regulatory license to Ripple’s portfolio. The payment processor already has over 30 Money Transmitter License across the United States, and with Fortress Trust’s takeover, the list would now also include the Nevada Trust license.

Ripple has been long aiming to expand its presence in the enterprise crypto market, verified by the fact that it was a minority investor in Fortress Trust in 2022. Participating in its seed round, the firm has been looking to strengthen its footing, regardless of the crypto market condition.

XRP price recovery is a matter of concern

XRP price has been moving sideways for the past eight days with no signs of a recovery in sight. The altcoin brought substantial profits to investors around mid-July when it charted a 74% rally but has only been declining since then. At the time of writing, the altcoin could be seen down by over 38%, trading at $0.504.

XRP/USD 1-day chart

XRP/USD 1-day chart

Despite the positive developments in the case of Ripple, the altcoin has been failing to draw investors. The reason behind this is most likely the broader market bearish conditions, which have kept investors from acquiring XRP despite nearly two-month low prices.

This is also reflected in the Market Value to Realized Value (MVRV) ratio. The metric is used to analyze the average profit/loss experienced by the investors over the past month, as it uses a 30-day timeframe. The indicator marking sitting at -3.52 % suggests that short-term investors are still experiencing losses in the market.

The metric also points out the buy zones for investors, which historically have proved to be the point beyond which price tends to recover. These areas are labeled as opportunity zone, and in the past, XRP price has bounced back as once losses reach this point, investors shows restraint in selling and instead switch to accumulation.

However, this time around, owing to uncertain market conditions, the price failed to bounce back despite the MVRV ratio hitting -24% around mid-August. 

XRP MVRV ratio

XRP MVRV ratio

Thus, XRP holders’ lack of profits could be countered only when the rest of the market also changes its stance from bearish to bullish. Until then, $0.500 would be the level to watch as a critical support line for XRP, slipping below which would be concerning for investors.


Like this article? Help us with some feedback by answering this survey:



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP