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XRP entered 2026 with strong momentum, but investor optimism proved short-lived. After an early-January rally that pushed the price up to $2.41, the market reversed and the token gradually gave back nearly all of its gains for the year. A combination of market instability, macroeconomic concerns, and weakening investor sentiment weighed heavily on XRP’s performance.

A strong start followed by a correction
XRP began the year on an optimistic note. Within the first six days of January, it surged by roughly 31%, briefly becoming one of the best-performing large-cap cryptocurrencies. The rally was fueled by renewed capital flows into regulated investment products linked to XRP, alongside growing interest from both institutional and retail investors.
However, the enthusiasm quickly faded. Rising caution across financial markets and the return of macroeconomic risks shifted momentum not only for XRP, but for the broader crypto sector as well. At the time of writing, XRP is trading around $1.91, representing a decline of approximately 20.7% from its January peak.

Back to early-year levels
Market data show that XRP entered 2026 at a price near $1.84. When the token fell back to this level later in January, virtually all year-to-date gains had been erased. A subsequent rebound was modest, leaving XRP up only by low single digits.
This marks a sharp contrast to its earlier performance. In 2025, XRP reached a multi-year high of $3.67 and, for a brief period in January, outperformed Bitcoin, Ethereum, and Solana. That surge allowed XRP to reclaim third place among cryptocurrencies by market capitalization (excluding stablecoins), overtaking BNB.

Capital inflows meet macroeconomic reality
The early-January rally coincided with strong inflows into crypto exchange-traded products (ETPs). More than $1 billion flowed into these vehicles during the first trading days of the year, signaling a return of investor confidence. Spot ETF products linked to XRP alone attracted nearly $79 million in inflows over three days, building on the momentum from the previous year.
That positive impulse, however, ran into a challenging macroeconomic backdrop. Expectations for near-term interest rate cuts weakened, key economic data showed limited progress, and the delay of the CLARITY bill began to weigh on market sentiment. Investor confidence was further shaken by renewed trade-war concerns after Donald Trump once again raised the prospect of higher tariffs. As a result, XRP slipped below the psychological $2 level.

What comes next for XRP
Analysts generally view macro-driven setbacks of this kind as temporary. A stabilization in sentiment could come from the broader four-year crypto cycle and, in particular, from renewed strength in Bitcoin. If forecasts of a so-called supercycle materialize, XRP could follow the broader market higher.
Regulatory developments could also play a role in improving sentiment. While opinions differ on whether current legislative proposals will deliver sufficient regulatory clarity, many market participants believe clearer rules would support wider adoption of digital assets. XRP has also been gaining recognition as a payment-focused alternative to legacy financial systems, a narrative that could strengthen its long-term outlook.
As for price targets, opinions remain divided. Some institutions, including Standard Chartered, have suggested XRP could reach as high as $8 by year-end, implying a potential reversal from the current consolidation phase. That scenario remains highly speculative, however, as extreme volatility continues to define the cryptocurrency market.

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