XRP, currently the fifth-largest cryptocurrency by market capitalization, has recently dropped below the key $2 level. This decline is part of a broader market correction that has weakened investor sentiment since October. However, market analyst Sam Daodu has outlined five major factors that could propel the altcoin to new record highs of $5 by 2026.
In a detailed report, Daodu stressed that for XRP to reach $5, several specific conditions must align. Each factor addresses different obstacles that have kept XRP’s price from rising.
A leading catalyst in Daodu’s analysis is the possibility of a BlackRock-backed XRP exchange-traded fund (ETF). Since mid-November 2025, spot XRP ETFs have already drawn over $1 billion in total inflows. If BlackRock proceeds with its own ETF, estimates suggest inflows could surpass $2 billion. Daodu believes such a surge of capital would reshape market demand and strengthen XRP’s unique status as the only cryptocurrency linked to a fully regulated digital asset in the United States, significantly boosting its case for reaching $5.
The second factor is Japan’s growing role in the XRP ecosystem. Ripple, together with SBI Holdings, plans to launch RLUSD—Ripple’s U.S. dollar-backed stablecoin—in Japan by the first quarter of 2026, subject to regulatory approval. Using RLUSD on the XRP Ledger (XRPL) could generate substantial demand for XRP as a bridge currency, supporting a path to $5, even if this effect develops gradually.
The third catalyst is asset tokenization. Ripple’s expanded partnership with Archax aims to bring “hundreds of millions of dollars” in tokenized equity, debt, and funds onto the XRP Ledger by mid-2026. If the XRPL captures even a modest 5–10% of the tokenized asset settlement market, demand for XRP could rise considerably, further supporting the $5 target.
Fourth, macroeconomic policy will influence XRP’s potential upside. Expected interest rate cuts by the Federal Reserve would likely reduce returns on cash and short-term bonds, traditionally pushing capital toward riskier assets that offer growth and liquidity.
Finally, recent on-chain data shows a notable shift in supply dynamics. The amount of XRP held on exchanges has fallen, with 1.35 billion XRP withdrawn in less than two months. Balances dropped from around 3.95 billion tokens to roughly 2.6 billion, with over a billion removed in just three weeks. Such withdrawals signal a change in holder behavior, as many are moving XRP into long-term storage.
Daodu concludes that reaching $5 will not come from a single event or surge of excitement. It will require the convergence of multiple drivers, including strong ETF inflows, institutional adoption, and favorable macroeconomic conditions.
At the time of writing, XRP was trading at $1.88, down nearly 50% from its all-time high reached in July of this year.
Frequently Asked Questions
Of course Here is a list of FAQs about the analyst prediction that five major factors could push XRP to 5 by 2026
Beginner General Questions
1 What is this 5 XRP prediction I keep hearing about
A leading market analyst has suggested that a combination of five key factors could drive the price of the XRP cryptocurrency to 5 by the year 2026
2 Who made this prediction and should I trust it
The prediction was made by a wellknown crypto analyst but its crucial to remember it is just an analysis and opinion not a guarantee All cryptocurrency investments are highly speculative and risky
3 What is XRP anyway
XRP is a digital asset and the native cryptocurrency of the XRP Ledger Its designed for fast lowcost international payments and settlements primarily for financial institutions
4 Whats the big deal about 5 How much would that be worth
XRPs price has historically been a fraction of a dollar Reaching 5 would represent a massive increase from its current price Your investments value would multiply accordingly
5 Is this a sure thing Should I invest all my money
Absolutely not This is a highrisk prediction about the future You should never invest money you cannot afford to lose and allin bets are extremely dangerous in volatile markets like crypto
Advanced Questions About the Five Major Factors
6 What are the five major factors the analyst mentioned
While the exact list can vary by analyst they typically include 1 Resolution of the SEC lawsuit 2 Massive adoption by banks and payment providers 3 Favorable regulatory clarity for XRP 4 Overall crypto bull market cycles and 5 Technological developments and use cases on the XRP Ledger
7 How does the SEC lawsuit against Ripple affect XRPs price
The lawsuit created massive uncertainty which suppressed the price and limited its listing on some US exchanges A clear favorable resolution is seen as the single biggest catalyst to remove that uncertainty and allow institutions to engage with XRP freely