The Crypto Desk desk. Editor: Sam Daodu.
As we move toward 2027, XRP (CRYPTO:XRP) is experiencing a tough year, down 47.9%. It’s currently trading at about 96 cents—73.8% below its all-time high of $3.65, reached on July 17, 2025. In fact, just a day prior, XRP closed at its lowest daily point in a year at 91 cents.
For XRP to recover, we have three key price points to consider. The first is a return to $1, about 4% higher than its current price; the next is the 200-day moving average of $1.26—around 31% higher; and the last is $1.84, where it began the year, about 92% higher.
XRP’s Market Cap Has Dropped From $142.8 Billion to $60.6 Billion
Market cap, the coin’s price multiplied by the number of coins in circulation, shows XRP’s situation better than price alone. It stood at $142.8 billion when XRP closed at $2.35 on January 5. Now, its market cap has fallen to $60.6 billion.
XRP’s supply complicates any recovery. Around 63.5 billion XRP are in circulation, up from 62.9 billion at the end of September. Ripple, the company behind XRP, holds most of the remaining fixed supply of 100 billion in escrow and releases coins each month. As new coins enter the market, demand has to absorb them before prices can rise, as our breakdown of what XRP needs to get back to $2 shows.
Bitcoin, Rates, ETF Flows and Washington Have to Turn for XRP
Bitcoin Needs to Stabilize While Interest Rates Remain High
XRP’s last significant recovery was closely tied to Bitcoin (CRYPTO:BTC). Bitcoin surged from $62,837 on August 16 to $82,131 by October 15, helping XRP climb from 99 cents to $1.52 by August 23. Bitcoin now trades at $64,728, down 28.6% for the year.
Interest rates are also working against XRP. The Federal Reserve raised its benchmark federal funds rate from 3.75% to 4% on September 17. Meanwhile, the yield on the 10-year Treasury reached 5.1% on November 12, close to its one-year peak of 5.31%. High returns on stable investments often draw money away from more speculative assets like crypto.
ETF Inflows Need to Rise Again
Spot XRP ETFs, which directly hold XRP, had collected $1.79 billion in net inflows by November 13, down from a peak of $1.81 billion on October 29. The worst recent day saw a $10.4 million outflow on November 9.
Bitcoin’s movements have affected XRP more significantly than ETF flows. For instance, the ETFs only brought in $5.8 million in August, yet XRP still reached $1.70 as Bitcoin turned bullish.
Washington and the XRP Ledger Have to Deliver
The CLARITY Act aims to establish federal regulations for cryptocurrencies, including who oversees tokens like XRP. However, it failed in the Senate in September, 50 votes to 49, short of the 60 needed to advance. If it doesn’t pass by January 3, 2027, when Democrats take control of both chambers, the bill dies.
Our analysis suggests that Democrats are more likely to revise the bill in 2027 than to pass the current version.
A brighter aspect is the usage of Ripple’s stablecoin, RLUSD, which has grown larger than PayPal’s (NASDAQ:PYPL | PYPL Price Prediction) stablecoin, PYUSD. Increased RLUSD activity on the XRP Ledger, which is the blockchain XRP runs on, could create steady demand.
XRP Took About Seven and a Half Years to Recover Last Time
XRP took about seven and a half years to recover from its last downturn. After peaking around $3.40 in January 2018, it dropped nearly 97% to about 11 cents by March 2020. Although it rebounded to $1.96 in April 2021, it still fell 42% short of its previous high. The SEC lawsuit against Ripple then kept XRP below $1 for most of 2022 and 2023.
In July 2025, XRP reached a new all-time high of $3.65, roughly seven and a half years after its prior peak. Now that the lawsuit has concluded, the next recovery could happen more quickly.
XRP also displayed a rapid recovery in August, closing below $1 on only two days before hitting $1.70 on August 22. However, selling pressure quickly returned, and XRP gave back all its gains by November.
Will XRP Recover in 2027?
XRP could reasonably exceed $1 in 2027, but a full return to $1.84 seems unlikely. A crucial step would be Bitcoin stabilizing. Then XRP would need to close above $1, break through the 200-day average at $1.26, and the 50-day average at $1.31.
So what could show XRP is set to recover in 2027? We would look for a daily close above $1.26 alongside ETF inflows rising past $1.81 billion, and our Claude AI look at which coin could recover first adds another angle. If the CLARITY Act expires and Bitcoin continues to slide, XRP might test lower levels around 90 cents, and even 80 cents.
XRP Recovery FAQ
Will XRP Ever Recover?
XRP has shown the ability to bounce back in the past, though it took around seven and a half years for XRP to surpass its 2018 peak price. It has still increased by 56.7% over the last three years. Our predictions for XRP’s all-time high suggest what it might take to reach a new peak.
Is XRP a Good Long-Term Investment?
XRP’s performance depends heavily on timing. Over a decade, it has skyrocketed by more than 11,600%. However, over the last five years, it has declined by 12.2%. Long-term investors have endured significant drops in value, with declines of 97% and 73.8% at different times.
Contact [email protected] for any questions or corrections.
Sam Daodu is a crypto analyst and the editor of 24/7 Wall St.'s Crypto Desk, where he covers Bitcoin, XRP, Ethereum, Solana and the altcoins investors search for most. His work focuses on price levels, spot ETF flows, on-chain data and the regulatory decisions that move crypto markets, written so a first-time buyer and a seasoned trader can both use it.
Sam has written about crypto professionally since 2019 and has published more than 2,000 articles. Before joining 24/7 Wall St., he wrote for crypto media outlets and Web3 companies and ghostwrote for crypto founders and token launches. His analysis is syndicated on Yahoo Finance, MSN and AOL and has been cited by other crypto news sites. He also founded MacLabs Marketing, a content and personal branding agency for crypto founders and executives.
When he isn't reading charts, Sam is usually at the gym or watching One Piece, a series he maintains has better tokenomics than most altcoins.
