XRP Price Forecast: Can Bulls Reclaim $1.1072 as Regulatory Progress Supports Long-Term Outlook?

Quick overview

Despite the improvement in the long-term fundamentals, XRP is still trading under a lot of selling pressure. Currently, the token is trading at $1.0935 amid traders’ concerns about regulatory hurdles and the risk-off sentiment prevailing in the broader crypto markets due to high interest rates. In addition, Ripple’s continued adoption by global payment service providers, banks, and other businesses, alongside improving regulatory clarity, have further solidified the investment thesis around the asset based on its utility, which is expected to help sustain its long-term rally in the future. However, in the short term, XRP is struggling within a downtrend in the daily timeframe, which is creating a challenge for the bulls to initiate a bullish trend for the asset.

Regulatory Progress and Payment Adoption Strengthen XRP’s Fundamentals

One of the long-term drivers for XRP continues to remain the proposed CLARITY Act, a bill that would introduce regulatory definitions for crypto assets, which could potentially reduce legal ambiguities associated with Ripple’s digital asset. The bill could also bring banks and other institutions back to the XRP and blockchain markets, which would increase liquidity. The bill is expected to be discussed in the second half of 2026. Furthermore, Ripple continues to expand its global payment solutions by onboarding more partners globally and increasing usage of its treasury and payments infrastructure.

This increased on- and off-chain activity is further being supported by the XRP Ledger’s (XRPL) ability to process payments at a lower cost and with much faster settlement times, making it an attractive choice for payments. Ripple’s treasury and payments solution are also seeing a higher adoption rate due to the XRP being used as a bridge currency to make payments. The increasing adoption of the XRPL by institutional players for its treasury and payments solution and the expansion of the decentralized finance (DeFi) ecosystem on XRPL in terms of its decentralized exchange and the automated market maker (AMM), and other applications such as the real world assets (RWA) tokenization initiative have helped keep the on-chain activity and institutional interest in XRP steady.

Finally, the broader macro environment remains somewhat negative for the crypto market, as the higher interest rates for longer by the U.S. Federal Reserve (Fed) continue to weigh on investors’ appetite to hold risky assets. In addition, the recent easing of tensions between the U.S. and Iran following the signing of a temporary deal have also reduced the appeal for investors to hold the alternative asset. Even with all the above challenges, Ripple’s adoption and utility-driven focus is helping XRP stay resilient compared to other more speculative assets.

XRP Price Technical Analysis: Descending Channel Limits Recovery

As visible on the 4H timeframe, XRP remains confined within a descending channel pattern defined by successive lower highs and lower lows as selling has persisted over the past several weeks.

$1.1072 marks the first significant price resistance as it aligns with the descending channel and the 50EMA. The 100EMA around $1.1082 strengthens this resistance, which will be a crucial area for the bulls to sustain if they wish to see an improvement in the short-term market structure for XRP.

Should the buyers break through the $1.1072 level, the immediate upside potential for XRP is around $1.1177 and if the buyers continue to dominate the trading range, $1.1654 could be next.

On the downside, immediate support lies at $1.0880. If a significant decline from here occurs, the immediate support level of $1.0503 will be tested with $1.0097 as another potential support area further down.

As the RSI currently sits around the 42.4 level, XRP has failed to regain strength as the market remains in a weak momentum. Meanwhile, despite the MACD line, the bearish momentum has begun to weaken, although the bulls are yet to regain full control over the prevailing price trend.

XRP Price Outlook

As XRP continues to benefit from expanding institutional infrastructure, continued on-chain activity, and regulatory clarity potential, Ripple’s increasing prominence in cross-border payments and treasury management has provided a stronger fundamental backdrop than several alternative utility tokens. However, from a market analysis standpoint, the buyers will need to reclaim $1.1072 if they are going to reverse the bearish momentum.

Any follow-up above $1.1072 could enable a move higher towards the $1.1177 and $1.1654 levels. Any substantial break below $1.0880 would strengthen the bearish case and lead towards the $1.0503 level and beyond. Until then, XRP will likely move within the range as traders will remain on the sidelines until the regulators, Fed moves, and the broader sentiment of the cryptocurrency market are defined.

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.

His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.

His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.