Five Key Factors That Could Propel XRP to $5 by 2026, According to Leading Analyst

XRP, now the fifth biggest cryptocurrency in market capitalization, has recently dipped below the important $2 level amid a broader market downturn that has affected investor confidence since October. However, market expert Sam Daodu has pinpointed five key factors that could help boost XRP to new all-time highs of $5 by 2026.

Key Takeaways

XRP is currently struggling below the $2 mark.
Analyst Sam Daodu identifies five catalysts that could drive XRP's price to $5 by 2026.
Key factors include a potential BlackRock-backed ETF, the launch of a stablecoin in Japan, and an increase in asset tokenization.
Macroeconomic trends, like anticipated rate cuts from the Federal Reserve, could benefit XRP.
On-chain data shows a significant reduction in exchange-held XRP, indicating a shift toward long-term holding.

XRP

Factors That Could Drive XRP's Growth

In his comprehensive report, Daodu stresses that for XRP to hit $5, several essential elements must align. These factors address barriers that have kept XRP's price from rising.

Potential for a BlackRock-Backed Ethereum ETF

At the top of Daodu’s examination is the possibility of a BlackRock-supported XRP exchange-traded fund (ETF). Since mid-November 2025, XRP ETFs have garnered over $1 billion in total inflows. Should BlackRock move forward with its ETF, projections suggest inflows could exceed $2 billion. This capital influx would not only redefine market demand but also reinforce XRP’s status as the only cryptocurrency associated with a fully regulated token in the United States, enhancing its chances of reaching the $5 milestone.

Japan's Growing Influence in the XRP Narrative

Another significant factor is Japan's emerging role in XRP’s future. Ripple, in partnership with SBI Holdings, plans to introduce RLUSD—Ripple’s USD-based stablecoin—in Japan by the first quarter of 2026, pending regulatory approval. The use of RLUSD on the XRP Ledger (XRPL) could create considerable demand for XRP as a bridging currency, supporting its trajectory toward $5, even if this growth occurs gradually.

The Impact of Asset Tokenization

The third catalyst identified by Daodu is asset tokenization. Ripple's strengthened alliance with Archax aims to bring in “hundreds of millions of dollars” in tokenized equity, debt, and funds onto the XRP Ledger by mid-2026. If the XRP Ledger captures even a modest portion, around 5-10%, of the tokenized asset settlement market, the demand for XRP would see a significant boost, further supporting its aim of hitting $5.

Macroeconomic Policies that Favor Riskier Assets

The fourth factor to consider is macroeconomic policy, which plays a vital role in XRP's potential for growth. Expected rate cuts by the Federal Reserve (Fed) could lower returns on cash and short-term bonds, typically driving investments towards riskier assets that promise growth and liquidity.

Changing Supply Dynamics for XRP

Finally, recent on-chain data reveals a crucial shift in supply dynamics. There has been a notable decline in XRP held on exchanges, with 1.35 billion XRP withdrawn in less than two months. Holdings fell from around 3.95 billion tokens to approximately 2.6 billion, with more than a billion exiting in just three weeks. This trend suggests a behavioral shift among holders, many of whom are moving XRP into long-term storage options.

Daodu believes that reaching the $5 target will not be a result of a single event or moment of enthusiasm. Instead, it will require the alignment of multiple factors, including strong ETF inflows, greater institutional adoption, and favorable economic conditions.

XRP The daily chart indicates that XRP's price is consolidating just below the crucial $2 threshold. Source: XRPUSDT on TradingView.com

Currently, the altcoin trades at $1.88, having decreased by nearly 50% from the all-time high levels achieved in July of this year.

Featured image from DALL-E, chart from TradingView.com