The cryptocurrency XRP has recently slipped back below the $2 threshold after a brief upward movement earlier this year, a shift that has raised concerns among investors questioning its capacity for recovery from the substantial downturn experienced in the middle of last year. Despite this cautionary environment, there are compelling indicators that suggest XRP, currently ranking as the fifth-largest digital asset by market capitalization, might be setting the stage for a significant price increase in 2026.
Investor enthusiasm for spot exchange-traded funds (ETFs) that hold XRP is one particularly positive sign. By the end of 2025, more than $1 billion had been invested into these new financial products. Presently, five spot XRP ETFs amass collective assets exceeding $225 million. The Canary XRP ETF leads the pack, managing $346 million in assets, underscoring robust institutional interest.
This persistent inflow from institutional participants is an encouraging signal, yet it remains uncertain whether it alone can double XRP's price. Nonetheless, this steady demand appears sufficient to establish support for XRP around the $2 price platform. Such consistent buying activity is forecasted to contribute to a rise to approximately $3 over the upcoming 12 months as institutional interest propels the market.
Looking beyond ETF demand, XRP's ambition to reach $4 hinges on the emergence of a powerful catalyst. Ripple, the organization behind the XRP token, has already laid important groundwork through substantial acquisitions totaling $2.5 billion during 2025, focused primarily on blockchain and cryptocurrency companies. Of particular significance was the $1.25 billion acquisition of Hidden Road, a prime brokerage with a global presence.
Ripple's strategy appears to involve integrating these acquisitions to craft an expansive financial infrastructure that will facilitate seamless global payment flows. Ripple executives have announced a deliberate pause in 2026 devoted to consolidating these new assets, signaling a critical phase intended to bridge the components of this infrastructure. Should this endeavor succeed, XRP is positioned to take a central role in enabling cross-border transactions worldwide, directly enhancing its utility and demand.
The possibility of XRP surpassing the $4 mark is not without precedent. Earlier in 2025, XRP reached a multi-year peak of $3.40 before retracing its gains, partly due to external tariff pressures. It rallied again later in the summer, approaching $3.65 in mid-July but failed to break through to $4. This history reflects XRP's capacity for rapid appreciation but also notable volatility.
Current market sentiment, as reflected in prediction markets, assigns only a 28% probability to XRP exceeding $4 by year-end, indicating a cautious outlook among investors and analysts. Despite this, given its current price near $2, the coin may present an undervalued opportunity relative to its potential catalytic developments. XRP’s characteristics position it as a crypto asset that, should Ripple’s strategic executions come to fruition, could experience a pronounced price movement within a compressed timeframe.
In summary, while XRP recently experienced price pressures that have tempered investor enthusiasm, a combination of strong ETF-driven asset inflows and significant blockchain infrastructure investments align to provide a plausible foundation for price appreciation. The forthcoming year will be pivotal as Ripple integrates its acquisitions and orchestrates the infrastructure that fosters XRP’s role in global finance. Nevertheless, investors should be mindful of XRP's historical price fluctuations and the uncertainties that remain in realizing a $4 valuation target within the near term.