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XRP has erased all the gains it made in early December 2024, pushing investors to shift their attention to what 2026 may hold for the token.
The prolonged market downturn continues to wreak havoc on the global crypto landscape, and XRP is no exception. The token, which surged in late November following President Donald Trump’s re-election, has now surrendered all those gains amid intensifying selling pressure.
For context, XRP climbed sharply from around $0.50 to $2 between November and December 2024. It extended this momentum through the first days of December and ultimately reached $2.46 on December 6, 2024. However, the renewed downturn quickly reversed this rally.
At the time of writing, XRP trades at $2.04, marking a 17.07% decline from its December 6 peak. The pullback wiped out all the gains the token has made since early December.
Data from CryptoRank shows that XRP has already lost 6.96% of its value since the start of December 2025, widening its 30-day decline to 12.3%. Over the past three months, it has fallen 27.3%, and remains down 6.15% over the last six months.
Will XRP Rebound in 2026?
Although 2025 has been unfavorable for most cryptocurrencies, including XRP, investors are now shifting their focus to 2026 and hoping for a stronger, more bullish year. This growing optimism stems from several major factors, including macroeconomic developments and crypto-specific catalysts.
CLARITY Act Passage
One of the most prominent reasons behind this positive outlook is the anticipated passage of the CLARITY Act. Industry stakeholders believe that 2026 could mark a major turning point for the market if the legislation becomes law.
The legislation aims to clearly define how cryptocurrencies should be classified and determine which regulator will oversee the industry. Currently in the Senate, the bill will move to the House if it passes and then proceed to the president’s desk.
Stakeholders widely expect that regulatory clarity will accelerate institutional adoption, potentially driving crypto prices higher. Even Cardano founder Charles Hoskinson recently predicted that Bitcoin could surge to a new all-time high of $250,000 next year—a move that would likely lift the broader market, including XRP.
Growing ETF Inflows
Institutional demand for XRP continues to climb, further fueling bullish expectations. This momentum is especially evident in the rapid inflows into newly launched spot XRP ETFs. Less than a month after the first full spot products went live, these ETFs are already nearing $1 billion in inflows. Data from SoSoValue shows cumulative inflows of $897.35 million to date.
The impact of rising ETF inflows cannot be overstated. Earlier this year, Bitcoin and Ethereum saw significant price rallies as capital poured into their respective ETFs. With XRP ETFs now attracting similarly strong demand, many analysts speculate that XRP could follow the same trajectory and experience a meaningful uptrend.
Anticipated Interest-Rate Cut
Optimism continues to build as investors expect the U.S. Federal Reserve to reduce interest rates before the end of the year. Analysts at Bank of America predict a 25-basis-point cut, a shift that could inject fresh liquidity into the financial system.
Historically, rate cuts have triggered rallies in risk assets, and a similar response could benefit XRP alongside the broader crypto market.
XRP Treasury Reserve Initiative
Another bullish factor expected to influence XRP’s performance next year is the expanding XRP treasury reserve initiative. Ripple recently joined the Evernorth project, which aims to establish the world’s largest XRP treasury. Although the merger between Armada Acquisition Corp II and Evernorth is scheduled for completion in 2026, both entities have already begun accumulating XRP from the open market.
To date, they have acquired more than 400 million XRP, reducing the circulating supply and potentially increasing long-term scarcity.
While these developments position XRP for a potentially strong rally in 2026, the token remains vulnerable to macroeconomic shocks, as seen earlier this year.