Driven by Ripple's strategic partnerships, high open interest, and market structure pointing to a parabolic rise to $4.28, the price of XRP rose today.
$XRP 1.41 USD led the cryptocurrency market recovery on November 27, rising 10.5% in the past 24 hours, trading at $1.43.
Data from Cointelegraph Markets Pro and TradingView shows that XRP rose from a low of $1.28 on November 26, climbing to an intraday high of $1.46 on November 27, marking a rise of up to 14%. The weekly and monthly gains for the XRP/USD pair were 30% and 179%, respectively.
In contrast, as of the time of this article's publication, the total cryptocurrency market cap rose just 1.6% daily to $3.24 trillion. Bitcoin gained 2%, while Ethereum (ETH) rose 5% on the day.
Let's take a closer look at the factors driving the rise in XRP prices today.
XRP price rises after Ripple partners with Archax.
Ripple announced a partnership with the UK FCA-regulated digital asset exchange Archax to launch a tokenized money market fund on the XRP ledger.
According to a press release on November 25, the fund will be managed by UK asset management company abrdn and is part of its £3.8 billion liquidity fund (Lux).
The statement noted: "Archax is the first FCA-regulated digital asset exchange, broker, and custodian to provide a tokenized money market fund from UK asset management company abrdn [as stated]."
Through this new partnership, the payment company aims to tap into the growing potential of tokenized finance. According to McKinsey, assets managed in tokenized money market funds are estimated to exceed $1 billion, with the total value of tokenized assets expected to reach $16 trillion by 2030.
When discussing this collaboration, RippleX Senior Vice President Markus Infanger stated:
There is no doubt that the on-chain economy is gaining momentum. By partnering with companies like Archax, we are excited to help financial institutions like abrdn seize the great opportunities brought by blockchain and digital asset technology for large-scale utility.
On November 19, Ripple announced a partnership with Mercy Corps Ventures to provide financial inclusion for entrepreneurs and small businesses in emerging markets by leveraging the XRP Ledger (XRPL).
These partnerships may promote the adoption of XRP, potentially increasing demand for the token.
XRP open interest climbs to a new high.
Expectations for a cryptocurrency-friendly regulatory environment during President Trump's term and in collaboration with Ripple have spurred the growth of XRP tracking futures, with open interest (OI) soaring to an all-time high on November 22.
Open interest is a key indicator that traders and analysts use to assess market sentiment and predict future price movements.
The indicator remains near historical highs, rising 5% in the past 24 hours to $2.06. During the same period, the price rose 7.2%.
The increase in open interest indicates more capital entering the market, thereby enhancing the likelihood of a trend recovery.
$XRP's massive bullish flag aims for an all-time high.
The technical chart shows the price trend of $XRP forming a bullish flag pattern within a daily timeframe, as illustrated below.
A bullish flag is a bullish continuation pattern that forms after a sharp price rise followed by consolidation within a downward range.
When the price breaks through the upper trendline of the flag at $1.46, this pattern will disappear, potentially rising to the previous height of the upward trend.
This sets the upper target for the price of $XRP at $4.28, marking an all-time high for the sixth-ranked cryptocurrency by market cap.
However, the daily relative strength index for $XRP remains in overbought territory on the daily chart at 82, indicating the possibility of a pullback is relatively high.
Thus, a pullback from $1.43 may retest the downward trendline of the flag (around $1.28). Below this level, the price could drop towards the psychological level of $1.00-$1.05.
