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Where Will XRP (Ripple) Go Next?
The recent crypto slump has weighed heavily on Ripple Labs' XRP (CRYPTO: XRP). The token is down over 60% on its all-time high, closing at $1.42 on Feb. 18. Unfortunately, XRP is likely to struggle further if the rout continues, which it may well do.
Standard Chartered recently slashed its 2026 target for XRP by 65% from $8 to $2.80. The investment bank also backpedalled on forecasts for Bitcoin and Ethereum, citing the harsh climate and liquidity challenges. That said, its XRP cut was the biggest and may reflect shifting perceptions about the token's utility.
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When will XRP recover?
XRP's immediate fate is closely tied to the wider market, where fear is driving prices. Many investors are asking what might cause a turnaround. There's limited appetite for risk, and liquidity hasn't really returned since $19 billion of leveraged positions got wiped out in a single October day.
Regulatory progress with the Clarity Act would certainly help. The bill, which would give a legal framework for the crypto industry, has stalled in the Senate. Negotiations continue, and there are hopes it will pass in the coming months.
Rate cuts could also ease the downward pressure. They often boost crypto prices, increasing liquidity and making investors more willing to take risks. However, the Fed is unlikely to make cuts before June.
The crypto winter may not end quickly, but Bitcoin and Ethereum have always erased their losses and gone on to set new highs. While there are no guarantees in crypto, I think this will happen again -- not least because of the major strides we've taken in adoption and institutional buying. However, we may first have to trudge through further sideways or downward action.
When confidence returns, XRP is likely to recover. Institutional buying continues, though inflows have ebbed. There's about $1.2 billion in XRP ETFs, which got the green light in November. Ripple's press releases show a steady stream of partnerships and regulatory progress in Europe and the U.S.
