Ripple‘s XRP, the digital token central to the Ripple network, last traded above $2 in January 2026 after enjoying a bullish year that pushed it to a record high—the first such surge in over seven years. However, the momentum has reversed in recent months, with XRP’s price even dipping below the $1 threshold last month.
Market rebounds lose steam
Late last month, the broader cryptocurrency market showed signs of recovery as Bitcoin (BTC) briefly climbed back above $80,000. This temporary rally also supported XRP, which registered modest gains. Yet, as Bitcoin slipped to the $77,000 level, XRP mirrored the decline, underscoring its correlation with the wider crypto market.
The upswing was driven by two primary catalysts. President Donald Trump hosted a cryptocurrency event at the White House that notably boosted investor sentiment toward digital assets. In parallel, the US Treasury announced an expansion of its bond buyback program, increasing market liquidity and supporting riskier assets like cryptocurrencies.
XRP’s recent rebound appeared short-lived as changing economic signals and uncertainties over US monetary policy weighed on the asset’s price.
Despite these supportive factors, the momentum has begun to wane. Analysts point to a likely decline in prices in the near future, with strong support for XRP hovering just above the $1 mark.
Monetary policy, inflation, and risk of correction
One of the main risks for cryptocurrencies currently is rising inflation. During the annual Jackson Hole meeting, Federal Reserve Chair Kevin Warsh delivered a hawkish address, emphasizing the ongoing inflationary pressures in the economy.
He signaled a strong possibility of further interest rate increases, which could trigger outflows from XRP and other digital assets as investors seek safer returns amid higher rates.
The US Treasury, having recently injected liquidity into the market through expanded bond buybacks, is expected to draw funds back as it replenishes its cash reserves. Such a reversal, analysts warn, could drain liquidity from financial markets and weigh heavily on cryptocurrencies, including XRP.
Without significant positive catalysts on the horizon, market observers cite limited bullish developments that could propel XRP toward the $2 mark by the end of 2026.
Given current macroeconomic headwinds and a likely tightening of US monetary policy, the probability of XRP reaching $2 in the short term appears low unless major new drivers emerge.
Ripple, the company behind XRP, facilitates cross-border payments and settlements using blockchain technology. XRP is designed to offer faster and cheaper international transactions compared to traditional payment rails.
However, in the absence of impactful market developments, XRP remains vulnerable to broader economic forces shaping risk asset performance. For investors, the path back to $2 by 2026 seems increasingly uncertain.
