XRP may now be on track to record its first yearly loss in the past three years, but a market expert believes this could be a bullish sign.

The crypto market has not fared well since the global valuation reached its peak of $4.27 trillion on Oct. 6. Since then, the crypto market cap has lost $1.33 trillion, now below the $3 trillion mark. This has impacted XRP’s price alongside other altcoins, with XRP now down over 38% since Oct. 6.

On the monthly timeframe, XRP has witnessed two consecutive losing candlesticks, and is on track to record a third one amid a 13.22% drop this month, December. With this performance, XRP has now collapsed 10% this year, now gearing up for its first yearly loss since the 2022 bear market. 

Why XRP Could See a Bullish Run in 2026

However, market analyst Alex Cobb believes this may be an important bullish indication for XRP, especially considering its future outlook in 2026. Notably, Cobb pointed out today that XRP has not recorded two consecutive yearly losses since 2021. Nonetheless, the chart data shows that the record goes back to 2019.

Specifically, the last time XRP witnessed two consecutive red yearly candlesticks was when it dropped 82.49% in 2018 and then recorded a subsequent 44.75% decline in 2019. Within this period, XRP collapsed from a price of $1.97 in January 2018 to a low of $0.1925 by the end of 2019. Since then, it has not witnessed two consecutive yearly losses.

In fact, since the 2018 and 2019 declines, XRP has only seen one red yearly candlestick, which emerged when it dropped 59.13% during the 2022 bear market. This was largely due to the two black swan events involving Terra and FTX that year. Despite this, XRP recovered by an impressive 81.51% the next year, 2023.

With XRP now on track to record another yearly loss, Cobb believes the next year, 2026, could be similarly bullish for XRP, as the chances of a second red annual candlestick remain low. However, how much this anticipated rebound could push XRP remains unclear. But with a 237% increase in 2024, XRP has already displayed its capacity for explosive surges.

2025 May Have Prepared the Foundation

Interestingly, multiple market commentators hold similar sentiments to Cobb. For instance, earlier this month, Zach Rector presented three reasons XRP failed to hit bullish targets this year, including the late arrival of XRP ETFs, the late resolution of the SEC lawsuit, and the delay with the Clarity Act, which could pass next year.

However, Rector argued that the impact of these developments could emerge next year, 2026. This aligns with Cobb’s suggestion that 2026 could come with an explosive surge. 

Essentially, XRP used 2025 to set up the groundwork for an explosive rally next year. Interestingly, XRP ETFs have already begun seeing massive success, recently surpassing $1 billion in net inflows. However, investors should recognize that, despite the bullish sentiments, there is no guarantee XRP will perform well next year and manage their expectations.

Amid growing market uncertainties, an analytical exposition has argued that selling XRP at this stage makes no sense in either a bullish or a bearish scenario.

XRP is down 8% over the past seven days. Interestingly, its current price of $1.88 indicates that the token has corrected by 48.6% from its high of $3.66 in July.

Notably, the downtrend has sparked mixed feelings among XRP proponents about the token’s near- and mid-term direction. Amid all this, market technician EGRAG Crypto believes it would be a very poor investment decision to sell XRP at this point.

Don’t Sell XRP Even If a Bear Market Has Begun

While EGRAG remains resolute that XRP has much more upside, he emphasized that selling now “makes no sense” even if the bear market has started. Backing his belief is the sentiment that the market doesn’t move in a straightforward manner. 

According to him, XRP may have a final upward push if bears had actually taken over the current market. This means a relief pump could still occur, making selling here the worst possible time.

Fatal to Sell if the Trend is Barely Correctional

Notably, he calls this an emotional sell zone, suggesting that the current market sell-off is not the end of the bull market. Moreover, he highlighted that smart money sells when the market’s retail sentiment is bullish, rather than during periods of fear.

Additionally, the chart shows that the current downtrend is a reset rather than a collapse, as many argue. He even suggested that bears would get a better exit later, implying that these bears could still sell off their XRP bags at higher prices.

Moreover, he stressed that if the current dip were only a correction, it would be fatal to sell XRP now, as a recovery could be on the horizon. He then concluded that, in both bullish and bearish scenarios, the chart says, “Don’t Sell Here.”

XRP Reversal Would Be Massive

Meanwhile, an accompanying chart shows that XRP could see rapid bullish development when the consolidation phase ends. Specifically, it shows a 3x rally after a 3-month consolidation in early 2014.

XRP increased 2x again in late 2014 after consolidating for 7 months, then surged 14x after a 27-month accumulation from 2015 to late 2017. Interestingly, XRP has been in a 96-month accumulation phase since its all-time high of $3.84 in January 2018.

A breakout would set XRP up for unprecedented heights, with a chart highlighting an average surge of 6.75x, citing historical context. It also shows a possible rise to $27, EGRAG’s long-standing bullish XRP target.

Amid recent bullish developments surrounding Ripple, discussions around whether the firm’s strategy centers on XRP have re-emerged.

For context, Ripple has completed several high-profile acquisitions, including GTreasury, Metaco, and Hidden Road, launched its RLUSD stablecoin, and secured conditional approval for a national trust bank charter. 

Despite these developments, some critics have argued that Ripple has shifted focus from XRP’s utility toward building enterprise infrastructure.

Notably, Ripple CEO Brad Garlinghouse recently addressed this concern, stressing that XRP remains central to Ripple’s long-term strategy. Still, many have remained pessimistic. 

In response, prominent XRP advocate Digital Asset Investor (DAI) explored the issue further by asking Grok to assess XRP’s potential price if Ripple’s core objective truly revolved around boosting the token’s valuation and positioning it as a global reserve asset.

Ripple Positioning XRP for Broader Global Utility

Grok responded with an analysis, arguing that Ripple’s past and current actions align with a strategy built around expanding XRP’s utility until rising demand naturally supports higher valuations.

The chatbot explained that Ripple spent more than a decade building the foundation for XRP to function as a liquidity bridge rather than a speculative asset. According to Grok, the XRP Ledger’s fast settlement times, low costs, and energy efficiency allowed Ripple to attract banks and payment providers worldwide. 

Ripple then embedded XRP into cross-border payments through its On-Demand Liquidity product, enabling institutions to move money instantly while avoiding traditional nostro and vostro accounts that lock up an estimated $27 trillion globally.

Grok pointed out that by 2024, Ripple processed over $30 billion annually through ODL corridors, particularly across Asia-Pacific and Latin America. It noted that this level of usage created consistent demand for XRP as financial institutions relied on it for real-time settlement. 

Grok also referenced XRP’s previous market cap of around $200 billion as evidence that utility-driven adoption already influenced price during earlier market cycles. For context, XRP hit a peak valuation of $216 billion in July 2025 when its price soared to $3.66.

Ripple Expands Through Acquisitions

Regarding Ripple’s acquisitions, Grok suggested that they were deliberate steps to push XRP deeper into institutional finance. For instance, Grok highlighted Ripple’s $1.25 billion purchase of prime broker Hidden Road, which clears about $3 trillion annually for hundreds of clients. 

Under Ripple’s control, Grok suggested that XRP could act as the preferred bridge asset for crypto-to-fiat transactions, pushing its role beyond payments into liquidity management for hedge funds and trading firms.

Grok also discussed Ripple’s acquisition of GTreasury, arguing that corporate treasury inefficiencies leave trillions of dollars idle in U.S. accounts. The chatbot estimated that companies could free up $1.5 trillion in trapped capital by integrating XRP into treasury operations.

Ripple’s Regulatory Wins

Meanwhile, Grok also called attention to regulation. It emphasized that Ripple’s conditional approval for a national trust bank charter may expand XRP’s reach. 

With federal oversight, Ripple can offer custody and settlement services nationwide, making XRP more accessible to conservative institutions that previously stayed on the sidelines. Grok argued that regulated custody alone could lead to large-scale institutional inflows into XRP.

On how these developments could impact XRP’s price trajectory, Grok projected that by 2026, stronger institutional adoption driven by Ripple’s trust bank and acquisitions could push XRP above $5 if transaction volumes grow tenfold. 

Looking ahead, the chatbot suggested that sovereign-level adoption between 2027 and 2028 could drive XRP past $20, fueled by ETF growth reaching tens of billions of dollars in assets under management.

In Grok’s most bullish scenario, XRP becomes embedded in global settlement systems, central bank payment networks, and international trade finance. Under this assumption, Grok argued that XRP’s fixed supply of 100 billion tokens, combined with rising usage, could support significantly higher valuations over time.