XRP is on track to reach its highest price levels of 2024, approaching $2, driven by new strategic partnerships and increasing trading volume.
Ripple continued its higher peak (HH) formation by hitting a new yearly high of $1.68. The cryptocurrency is up 40% this week and has the potential to overtake BNB to become the fifth-largest cryptocurrency by market cap. XRP has gained 232% in the past 30 days, and on-chain data from the network also points to a positive recovery. According to xrpscan data, active accounts, or unique senders, on the XRP network increased from 15,592 on November 1 to 47,044 on November 16.
The average number of active accounts in November increased from approximately 12,000 to 25,000. Additionally, the increase in the number of new accounts activated on the XRP ledger indicates that new users on the network are proliferating rapidly.
The bullish sentiment around XRP has been bolstered by Ripple’s strategic partnership with Archax and plans to launch a tokenized money market fund on the XRP ledger. Additionally, crypto index fund manager Bitwise announced on Nov. 7 that it will be rebranding its European XRP ETP, offering investors in Europe the opportunity to access XRP via a physically-backed product.
XRP’s recent rally came after a strong breakout from a bullish pennant formation. The new high on the chart suggests that the uptrend will continue and strengthens the possibility that the price could rise further. According to Fibonacci extension levels, XRP’s target price is set between $1.95-$2.05. This range also includes the market peak formed at $1.97 during previous bull runs, and this level could pose strong resistance.
Independent crypto analyst Mikybull drew attention to the possibility of XRP reaching $2 and made the following assessment:
“$XRP is feeling a 2017-style bullish vibe. Price will reach $2, then pullback, then continue to rally to a new cycle high, possibly $10.”
Another important analysis is that the price and trading volume have been inversely correlated since November 16. This indicates that XRP has entered a distribution phase and that market investors are potentially considering selling. In particular, the fact that trading volume has fallen to its lowest level since November 10 in the last three days increases the risk of a bear market return. Investors should be prepared for a possible pullback by taking these signs into account.