The SEC's lawsuit closure removed a major overhang on XRP, enabling institutional participation and reshaping long-term market confidence.
Spot XRP ETFs with over $1.25 billion in net assets and Ripple’s focus on cross-border payments and XRPL use cases are shifting demand from speculation to adoption.
While derivatives activity remains muted, improving on-chain metrics and ETF inflows suggest XRP’s upside in 2026 will depend on real usage rather than leverage.
After a volatile 2025, XRP is about to step into 2026 at a very crucial moment. The coin, which surged to $3.66 in July before falling quickly, is currently trading around $1.87. Despite the price dropping significantly, XRP is not stabilizing with regulatory clarity, institutional adoption, and growing infrastructure, fueling the debate that XRP can set a new all-time high in 2026.
The significant development for XRP in 2025 was the closure of the SEC lawsuit against Ripple, which had been ongoing since 2020.
Ripple agreed to pay the SEC $50 million in penalty fees. The August 2024 ruling found that Ripple had committed an illegal act by selling unregistered securities to institutional investors.
Ending the litigation paved the way for institutional adoption. Evernorth was reported to be holding $1 billion in XRP, Trident Digital Tech Holdings' $500 million, Webus International's $300 million, VivoPower International's more than $100 million, and Wellgistics Health's over $50 million, among others.
Following the settlement, XRP rallied, briefly becoming one of the top four cryptocurrencies by market capitalization, peaking near $120 billion.
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Multiple fund managers applied to the SEC for XRP spot ETFs, including Bitwise Asset Management, Franklin Templeton, Canary Capital, Grayscale Investments, REX Shares/Osprey Funds, Amplify ETFs, 21Shares, Teucrium Trading, and Volatility Shares.
Four XRP spot ETFs were approved in November: Canary Capital's XRPC, Grayscale's XRPG, Bitwise's XRP, and Franklin Templeton's XRPZ.
Demand for XRP ETFs has steadied since their debut on November 13, with cumulative inflows totaling $ 14 billion and net assets of $1.25 billion as of December 26.
Ripple has gradually increased its ecosystem. The company continues to focus on its core strength: fast and low-cost cross-border payments.
Partnerships with financial institutions, technology startups, and payment processors have helped Ripple's image as a bridge between traditional finance and blockchain technology.
The XRP Ledger’s (XRPL) growth is one of the key components of this expansion. Real-world asset (RWA) tokenization initiatives, secure custody for companies, and the introduction of stablecoins such as Ripple USD (RLUSD) have all expanded the network's capabilities.
Ripple launched RLUSD, a US dollar-dominated stablecoin, in December 2024. The stablecoin redeemable 1:1 for USD was issued under a charter from the New York Department of Financial Services (NYDFS).
Nearly 37 billion XRP tokens are currently in profit, down from a nine-year high of 64 billion XRP, reached in July 2025. Historically, this kind of situation has been seen as a precursor to stabilization or recovery phases.
The derivatives market paints a cautious picture, with open interest down 0.99% to $3.36 billion and an OI-weighted funding rate at 0.0055%.
The current situation indicates that any sustained rally in 2026 will likely be driven by spot demand and real adoption rather than leverage.
Technically, XRP is still trading below critical moving averages, making the medium-term trend fragile. The $1.80 mark is key structural support.
If the price continues to fall below this level, it could expose the tokens to support levels at $1.60 and $1.25, areas that previously absorbed selling pressure.
On the higher side, reclaiming and sustaining above $3 would be a strong indicator that the sentiment has changed.
Beyond that, the $3.40-$3.66 zone represents heavy resistance from the prior cycle high. A clean break above this band could open the door to price discovery above $4.
The Relative Strength Index (RSI) remains at 41.23 within the bearish region, indicating that bearish momentum is still there. An extended decline toward oversold territory would accelerate the correction below $1.80.
Also Read: Will XRP Reach $10 Next Year? The Answer Could Shock You
Bullish Case: Ongoing inflows from ETFs, growing real-world utility on the XRPL, and the stable clarity of regulations could together drive XRP to $4-$5.
Cautious Case: Low participation in derivatives trading, the competition from stablecoins, and the general uncertainty around macro factors could keep XRP range-bound, with rallies facing resistance below prior highs.
1. Why is 2026 crucial for XRP?
XRP enters 2026 with regulatory clarity, live spot ETFs, and expanding infrastructure, creating a more mature and institution-friendly market environment.
2. How significant are XRP ETFs for price growth?
Spot XRP ETFs lower access barriers for investors and have attracted steady inflows, which could support long-term demand and reduce volatility.
3. What role does Ripple’s infrastructure play in XRP adoption?
Ripple’s focus on cross-border payments, XRPL expansion, and stablecoin integration aims to create utility-driven demand rather than purely speculative interest.
4. What are the key support and resistance levels for XRP?
Key support lies around $1.80, followed by $1.60 and $1.25, while primary resistance is seen near $3.00 and the $3.40-$3.66 zone.
5. Can XRP realistically reach a new all-time high in 2026?
A new high above $3.66 is possible if ETF inflows, adoption, and sentiment improve, but macro risks and low derivatives participation could limit upside.