Ripple Price Forecast: XRP bulls regain control as Ripple launches tokenized money market funds

• XRP fuels uptrend above $3.12 backed by macro-triggered, risk-on sentiment.
• Ripple, DBS Bank, and Franklin Templeton team up to provide tokenized money market fund trading backed by RLUSD.
• DBS Digital Exchange will list RLUSD stablecoin and Franklin Templeton’s MMF, enabling clients to manage digital asset portfolios.

Ripple (XRP) price gains bullish momentum above $3.12 on Thursday, underpinned by the United States (US) Federal Reserve's (Fed) 25-basis-point interest rate cut on Wednesday.

The widely anticipated interest rate cut broadly improved risk-on sentiment, but what caught the attention of investors was the dot plot, which showed that most Fed policymakers expect a rate cut at each of the remaining meetings this year.

XRP exhibits a short-term bullish outlook, with bulls eyeing a breakout toward its record high of $3.66, reached on July 18. 

Ripple, DBS and Franklin Templeton collaborate on tokenized MMF trading 

Ripple, DBS Bank and Franklin Templeton have signed a memorandum of understanding that sets the stage for the development and launch of trading and solutions backed by tokenized money market funds (MMFs) and stablecoins.

The collaboration taps key players in the banking system, investment management sector, enterprise blockchain and related cryptocurrency solutions. It also builds on the expansion of tokenized assets globally and growing institutional interest. Ripple stated that “some 87% of institutional investors expect to make investments into digital assets in 2025.”

As part of the project, DBS Digital Exchange (DDEx) will list sgBENJI – the token of Franklin Templeton’s tokenized MMF, Franklin Onchain US Dollar Short-Term Money Market Fund, alongside Ripple USD (RLUSD).

The setup would enable eligible clients to trade RLUSD for sgBENJI tokens, ensuring portfolio rebalancing within minutes while maintaining yield during volatile periods.

“Leveraging Franklin Templeton’s expertise in blockchain technologies and digital assets, we are excited to partner with DBS and Ripple to introduce cutting-edge trading and lending solutions for investors,” Roger Bayston, head of digital assets at Franklin Templeton, stated.

In the meantime, retail demand for XRP is growing, with the futures Open Interest (OI) averaging at $8.79 billion on Thursday, up from $7.37 billion on September 7.

If the OI, referring to the notional value of outstanding futures contracts, steadily rises in the coming days, it will indicate that more traders are betting on short-term price increases in XRP. 

A higher risk-on sentiment supports a recovery in the XRP price, as the path of least resistance remains upward.

XRP Futures Open Interest | Source: CoinGlass

Technical outlook: XRP gains bullish momentum 

XRP remains above $3.12 at the time of writing on Thursday, supported by a strong technical structure. The dovish macro outlook presented by the Fed on Wednesday has led to an improvement in risk-on sentiment, resulting in steady demand for XRP.

Bulls have the upper hand based on the position of the Relative Strength Index (RSI) at 60 and rising. Higher RSI readings approaching overbought territory would indicate growth in bullish momentum, as bulls look toward the record high of $3.66.

XRP/USDT daily chart

Key areas of interest for traders are the short-term hurdle at $3.18, which was previously tested on Saturday, the supply area around $3.35, tested in mid-August and the record high of $3.66. On the other hand, if profit-taking takes centre stage, price corrections would meet support provided by the 50-day Exponential Moving Average (EMA) at $2.95 and the 100-day EMA at $2.82.