- 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
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
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
Editors’ Picks
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high
Bitcoin and Ethereum are approaching their key support levels, and a sustained close below these marks could lead to further declines.
TON set to launch synthetic Bitcoin to boost its DeFi solutions
TON revealed its plan on Thursday to launch a synthetic Bitcoin token on its blockchain, allowing users to trade, stake, and earn yield using BTC. Following the announcement, TON is down over 3%.
Maker Price Forecast: MKR could stage 40% rally
MakerDAO is up 2% on Thursday and could be set for a 40% rise in the coming weeks if it successfully maintains an extended move above the descending trendline of a falling wedge. On-chain data also supports the bullish outlook after a four-month-long decline.
USDT market cap crosses $120 billion as stablecoins continue their uptrend
The stablecoin market cap continued its uptrend in October, characterized by USDT reaching a $120 billion market cap, according to a CCData report on Thursday. This indicates that investors are preparing liquidity to fuel more demand.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
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.