While Bitcoin languishes below $92,000 and Ethereum struggles for direction, one cryptocurrency has emerged as the unexpected star of 2026's opening act. XRP, the token developed by Ripple Labs, surged 9.27% in just 24 hours to reach $2.05—its highest level since mid-December—as traders positioned for what many believe could be the token's breakout year.

The SEC Cloud Has Lifted

The rally's foundation was laid in summer 2025, when the prolonged legal battle between the U.S. Securities and Exchange Commission and Ripple Labs finally concluded. Both parties withdrew their appeals, accepting the court's landmark decision that XRP is not a security—though Ripple paid a $125 million fine to close the chapter.

That regulatory clarity has transformed XRP's investment thesis virtually overnight. The departure of SEC Commissioner Caroline Crenshaw, who had been among the most vocal critics of crypto spot ETFs and opposed dropping the Ripple appeal, has further emboldened bulls. Market observers note that her exit could pave the way for more crypto-friendly policies under the current administration.

"We're seeing a fundamental shift in how institutional investors view XRP. The regulatory overhang that suppressed the token for years is finally gone."

— Digital asset strategist at a major Wall Street bank

Standard Chartered's Bold $8 Target

Standard Chartered has set the most ambitious price target on the Street, predicting XRP could surge to $8 by year-end 2026. That would represent approximately 315% upside from current levels—a forecast that has ignited debate among crypto analysts.

The bank's thesis rests on three pillars:

  • Regulatory clarity: The resolved SEC case removes the primary institutional barrier
  • Institutional adoption: Growing interest from banks and payment processors in Ripple's cross-border settlement technology
  • ETF momentum: Spot XRP ETFs have recorded over 30 consecutive days of inflows

Not everyone shares this optimism. More conservative analysts point to XRP's 7% year-to-date decline despite the broader crypto rally, suggesting a $3 target—still representing 58% upside—may be more realistic.

The ETF Catalyst

Perhaps the most compelling near-term catalyst is the steady flow into XRP exchange-traded funds. According to data from SoSoValue, XRP ETFs have attracted consistent inflows for over a month, including $15.55 million on December 30 alone. Total ETF-held assets have now reached $1.27 billion.

This institutional accumulation comes as Ripple's January escrow unlock—releasing 1 billion XRP—proved to be a "non-event," as the company typically relocks 60-80% of tokens. In December, roughly 70% was returned to escrow, leaving only 300-400 million XRP potentially entering circulation.

Policy Winds at Their Back

Speculation around upcoming legislation has added fuel to the rally. Traders are watching closely for a potential Market Structure Bill markup on January 15, which could further clarify cryptocurrency regulation and potentially expand the universe of approved digital asset products.

The combination of resolved litigation, structural ETF demand, and potential policy tailwinds has created what some analysts describe as a "perfect setup" for XRP. Whether the token can sustain its momentum will depend largely on broader crypto market conditions and whether institutional interest translates into sustained buying pressure.

What Investors Should Watch

For those considering XRP exposure, several key dates loom on the horizon:

  • January 15: Potential Market Structure Bill markup
  • Late January: FOMC meeting that could influence risk asset sentiment
  • Monthly escrow releases: Ripple's token unlock schedule

The risk, as always in crypto, cuts both ways. XRP's strong correlation with broader market sentiment means any risk-off move could quickly erase recent gains. But for bulls who have waited years for regulatory clarity, the path forward has never looked clearer.