Ripple (XRP) is making headlines with its groundbreaking $1.25 billion acquisition of Hidden Road, one of the largest deals in the cryptocurrency sector. Despite this significant move, XRP prices have continued to struggle, with the token experiencing a 9.5% decline over the past 24 hours. This raises the question: can this billion-dollar deal bring any relief to XRP or is the downward trend here to stay?

Ripple’s acquisition of Hidden Road, a growing prime brokerage firm based in London, aims to bolster its position in the financial sector by integrating traditional and digital financial systems. Hidden Road provides services across various asset classes such as foreign exchange, derivatives, and digital assets, with over 300 major financial institutions as clients. Ripple’s goal is to enhance its offerings, especially through its XRP Ledger (XRPL), while improving operational efficiency for large financial players.

However, despite the positive implications for Ripple’s products, the price of XRP has remained sluggish, reflecting the broader market sentiment. So, what can investors and traders expect in the short term for XRP?

What the Hidden Road Deal Means for Ripple

The acquisition of Hidden Road is a bold strategic move for Ripple. By bringing Hidden Road into its fold, Ripple aims to streamline its services, offering more advanced financial solutions such as secure digital asset storage and post-trade management using XRPL. Hidden Road plans to implement XRPL for handling post-trade documentation, a step that could potentially reduce operational costs and improve efficiency for financial institutions.

Ripple’s decision to offer custody services to Hidden Road’s clients is another step toward bridging the gap between traditional and digital finance. This integration could lead to more widespread adoption of Ripple’s blockchain-based solutions and enhance the utility of the XRP token, especially in the world of institutional finance.

Despite the clear potential for long-term growth and integration, XRP’s immediate price action tells a different story. The token has failed to maintain upward momentum and is still caught in a bearish trend, leading many to question whether this major acquisition will have any immediate impact on XRP’s price.

XRP Price Analysis: Struggling to Break Out

Technically, XRP is facing significant resistance. After the breakdown of a bearish head and shoulders pattern, it seems unlikely that XRP will make a quick recovery. According to market analysts, XRP must break above the $1.95 mark to reverse its downtrend. If it fails to do so, the price could decline by as much as 20%, potentially reaching the next support level at $1.50.

Recent price movements have also been underwhelming, with XRP trading below the 200-day Exponential Moving Average (EMA). This is typically seen as a bearish signal, suggesting that investors and traders are anticipating further price declines. At the time of writing, XRP was priced at around $1.82, down more than 9.5% in the last 24 hours.

Moreover, the trading volume has dropped by 21%, signaling weaker investor interest and confirming that the broader market sentiment remains negative. With such a weak price action and declining trading volume, it’s difficult to see a strong price recovery in the near term.

Bearish Sentiment: Traders Bet Against XRP

Data from Coinglass reveals that traders are overwhelmingly bearish on XRP. With short positions surpassing long positions by a significant margin, the market seems to be betting on continued downside for XRP. In the last 24 hours, $54.85 million in shorts have been placed, compared to just $33 million in long positions. This bearish outlook is compounded by the fact that XRP remains trapped between the $1.73 support and $1.86 resistance levels, with traders over-leveraged in this range.

These metrics suggest that the bearish sentiment surrounding XRP is not just about market conditions but also reflects traders’ confidence in a continued downward trend. Even with Ripple’s significant acquisition, the broader market factors, including the ongoing tariff wars and economic uncertainty, are weighing heavily on investor sentiment.

What’s Next for XRP?

While the acquisition of Hidden Road could provide Ripple with a more robust platform for growth and expansion in the future, XRP’s short-term outlook remains shaky. The failure to break through the $1.95 resistance level could lead to a further decline toward $1.50 and potentially even lower to the $1.20 range.

Investors should remain cautious and avoid getting too optimistic, as market sentiment remains overwhelmingly bearish. Although the Hidden Road acquisition is a significant step forward for Ripple, it will take time for these developments to have a meaningful impact on XRP’s price. For now, traders should be prepared for more volatility in the coming weeks.