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These Five Key Drivers Could Boost XRP To $5 By 2026, Claims Top Analyst

XRP, presently the fifth largest cryptocurrency by market cap, has lately fallen beneath the essential $2 mark amid a broader market correction that has dampened investor sentiment since October. However, market analyst Sam Daodu has recognized 5 important catalysts that might drive the altcoin to new all-time highs of $5 by 2026.

Potential Bullish Catalysts For XRP

In an in depth report, Daodu emphasised that for XRP to succeed in $5, a number of particular components have to work in unison. Each of those catalysts goals to deal with numerous limitations which have stored XRP’s value stagnant.

At the forefront of Daodu’s evaluation is the potential for a BlackRock-backed XRP exchange-traded fund (ETF). Since mid-November 2025, spot XRP ETFs have attracted over $1 billion in cumulative inflows. Should BlackRock transfer ahead with its ETF, estimates counsel that inflows might exceed $2 billion. 

Daodu’s evaluation factors that such capital inflow wouldn’t solely reshape market demand however would additionally solidify XRP’s place as the only real cryptocurrency tied to a completely regulated token within the United States, considerably enhancing its case for reaching $5.

Next on the listing is the evolving significance of Japan throughout the XRP narrative. Ripple, in collaboration with SBI Holdings, is ready to launch RLUSD—Ripple’s USD-backed stablecoin—in Japan by the primary quarter of 2026, pending regulatory approval. 

The use of RLUSD on the XRP Ledger (XRPL) can create substantial demand for XRP as a bridge forex, supporting the case for it to succeed in $5, even when this impression unfolds regularly over time.

From Tokenization To ETFs

The third catalyst that Daodu recognized is the tokenization of belongings. Ripple’s expanded partnership with Archax goals to herald “tons of of thousands and thousands of {dollars}” in tokenized fairness, debt, and funds onto the XRP Ledger by mid-2026. 

Should the XRP Ledger seize even a modest 5-10% of the tokenized asset settlement market, the demand for XRP would enhance considerably, additional supporting its purpose of reaching $5.

In fourth place, macroeconomic coverage performs a vital position in shaping XRP’s upside potential. Anticipated price cuts by the Federal Reserve (Fed) would doubtless lower returns on money and short-term bonds, historically driving capital towards riskier belongings that provide progress and liquidity. 

Lastly, latest on-chain data factors to a noteworthy change in provide dynamics. Exchange-held XRP has decreased, with 1.35 billion XRP faraway from exchanges in lower than two months. 

Balances plummeted from roughly 3.95 billion tokens to about 2.6 billion, with greater than a billion leaving in only a quick span of three weeks. Such withdrawals are indicative of a behavioral shift amongst holders, as many are opting to maneuver XRP into long-term storage options.

Daodu posits that reaching the $5 mark is not going to stem from a singular headline or second of exuberance. It will necessitate a convergence of a number of components, together with robust ETF inflows, institutional adoption, and favorable macroeconomic circumstances.

As of this writing, the altcoin was buying and selling at $1.88, dropping by virtually 50% from all-time high ranges reached again in July of this yr. 

Featured picture from DALL-E, chart from TradingView.com 

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