XRP struggles to maintain $1 as inflation and US policy cloud $2 target

Ripple‘s XRP, the digital token central to the Ripple network, last traded above $2 in January 2026 after enjoying a bullish year that pushed it to a record high—the first such surge in over seven years. However, the momentum has reversed in recent months, with XRP’s price even dipping below the $1 threshold last month.

Market rebounds lose steam

Late last month, the broader cryptocurrency market showed signs of recovery as Bitcoin (BTC) briefly climbed back above $80,000. This temporary rally also supported XRP, which registered modest gains. Yet, as Bitcoin slipped to the $77,000 level, XRP mirrored the decline, underscoring its correlation with the wider crypto market.

The upswing was driven by two primary catalysts. President Donald Trump hosted a cryptocurrency event at the White House that notably boosted investor sentiment toward digital assets. In parallel, the US Treasury announced an expansion of its bond buyback program, increasing market liquidity and supporting riskier assets like cryptocurrencies.

XRP’s recent rebound appeared short-lived as changing economic signals and uncertainties over US monetary policy weighed on the asset’s price.

Despite these supportive factors, the momentum has begun to wane. Analysts point to a likely decline in prices in the near future, with strong support for XRP hovering just above the $1 mark.