Analyst Identifies Catalysts for XRP to Reach $5 by 2026

XRP, the fifth largest cryptocurrency by market cap, has recently dropped below $2 amid a broader market correction. Market analyst Sam Daodu identifies five catalysts that could propel XRP to $5 by 2026.

Key Catalysts for XRP Growth

  • Potential BlackRock-backed XRP ETF: Since November 2025, spot XRP ETFs have seen over $1 billion in inflows. A BlackRock ETF could push these inflows beyond $2 billion, enhancing XRP's market demand and positioning.
  • Japan's Role: Ripple, with SBI Holdings, plans to launch RLUSD, a USD-backed stablecoin, in Japan by Q1 2026. This could increase demand for XRP as a bridge currency.
  • Asset Tokenization: Ripple's partnership with Archax aims to bring substantial tokenized assets onto the XRP Ledger by mid-2026. Capturing 5-10% of this market could significantly boost XRP demand.
  • Macroeconomic Factors: Expected Federal Reserve rate cuts may drive capital towards riskier assets like XRP, offering growth and liquidity.
  • On-chain Data: Exchange-held XRP decreased by 1.35 billion tokens in less than two months, suggesting a shift towards long-term storage by holders.

Daodu concludes that reaching $5 will require a combination of strong ETF inflows, institutional adoption, and favorable economic conditions. Currently, XRP trades at $1.88, nearly 50% down from its peak in July.

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