What is expected in the development of XRP?

XRP’s 2026 roadmap centers on expanding institutional decentralized finance (DeFi), upgrading technology, and growing its ecosystem, especially in the Asia-Pacific region.

1. Institutional Lending Protocol (Q1 2026) – A built-in lending system with identity checks to meet regulations.
2. Confidential MPTs & Privacy (2026) – New privacy tools for secure, private transactions.
3. XRPL Amendments (January 2026) – Technical fixes to improve automated market makers (AMMs), escrows, and ledger data.
4. Japan/Korea Fund Deployment (2026) – 1 billion XRP dedicated to supporting developers in Asia-Pacific.
5. EVM Sidechain Expansion (Q1 2026) – A new bridge connecting XRP Ledger to Ethereum and 55+ other blockchains.

Deep Dive

1. Institutional Lending Protocol (Q1 2026)

What it is: XRP Ledger will add a lending feature that allows institutions like market makers and fintech companies to offer fixed-rate loans. This system uses “Single Asset Vaults” to keep risks separate and supports both public and private participation (Ripple, 2025).
Why it matters: This could increase XRP’s use as collateral and improve liquidity. However, success depends on regulatory approval and whether institutions adopt it.

2. Confidential MPTs & Privacy (2026)

What it is: Multi-Purpose Tokens (MPTs) on XRP Ledger will get privacy upgrades using zero-knowledge proofs. This means institutions can make private transactions that are still auditable for compliance (RippleX, 2025).
Why it matters: This strengthens XRP Ledger’s appeal for regulated financial services. The challenge will be implementing privacy without slowing down the network.

3. XRPL Amendments (January 2026)

What it is: Five important updates in Rippled 3.0.0 will fix issues like rounding errors in AMMs, improve escrow accounting, and clean up ledger metadata. Validators will vote on these changes by January 2026 (Bitcoinist, 2025).
Why it matters: These fixes improve the developer experience but are unlikely to directly impact XRP’s price unless transaction volumes increase.

4. Japan/Korea Fund Deployment (2026)

What it is: Ripple is allocating 1 billion XRP to support developer growth, hackathons, and partnerships in Japan and Korea. Early projects benefiting include VWBL Protocol and Moia Finance (XRPL Apex, 2024).
Why it matters: This investment could drive long-term growth in the XRP ecosystem, especially if local regulations remain supportive and new use cases emerge.

5. EVM Sidechain Expansion (Q1 2026)

What it is: The XRP Ledger’s Ethereum Virtual Machine (EVM) sidechain will switch from XLS-38d to a new bridge by Axelar. This will connect XRP Ledger with Ethereum, Cosmos, and over 55 other blockchains, pending community approval (Flare, 2025).
Why it matters: This will attract more developers and increase interoperability. However, delays could happen due to the complexity of cross-chain security checks.

Conclusion

XRP’s 2026 plans focus on building institutional DeFi tools, improving cross-chain connections, and growing its presence in Asia-Pacific. While technical fixes address existing issues, new privacy and lending features could open up fresh opportunities. The big question remains: will institutional demand for compliant DeFi on XRP outpace competition from platforms like Ethereum and Solana?

What updates are there in the XRP code base?

The XRP Ledger received important updates in the last quarter of 2025, focusing on making the network more stable, scalable, and ready for big financial institutions.

1. Directory Limit Fix & Critical Patch (Dec 2025) – Fixed storage limits and a bug that could cause network slowdowns.
2. Post-Consensus Stability & Dependency Upgrades (Aug 2025) – Fixed memory leaks and software conflicts from a previous update.
3. Batch Transactions & Permissioned DEX (Jun 2025) – Added support for grouped transactions and controlled trading on decentralized exchanges.

Deep Dive

1. Directory Limit Fix & Critical Patch (Dec 2025)

Overview: The 2.6.2 update removed limits on how many entries can be stored in the ledger and fixed a bug that caused nodes to crash under heavy use.

Details:

• fixDirectoryLimit: This change removed hard limits on ledger directories, allowing the network to handle larger collections of tokens and NFTs without slowing down.
• Consensus Bug Fix: Fixed an issue where nodes could freeze if certain grouped transactions failed validation.

What this means:
This is positive for XRP because it allows the network to support large-scale projects and decentralized finance (DeFi) activities without interruptions. (Source)

2. Post-Consensus Stability & Dependency Upgrades (Aug 2025)

Overview: Version 2.6.1 rolled back problems from the earlier 2.6.0 release, fixing memory leaks and software library conflicts while keeping important features.

Details:

• Memory Optimization: Reduced spikes in memory use during token escrow operations.
• Boost 1.86 Migration: Updated software libraries to prevent crashes on older systems.
• NFT Metadata: Added a new identifier to help track NFTs better.

What this means:
This update is neutral for XRP’s growth but important for keeping the network stable. Node operators need to upgrade to avoid disruptions. (Source)

3. Batch Transactions & Permissioned DEX (Jun 2025)

Overview: Version 2.5.0 introduced the ability to group transactions so they happen all at once, plus new controls for decentralized exchanges to meet regulatory requirements.

Details:

• Batch Amendment: Allows multiple related transactions (like swaps and payments) to be processed together, reducing the risk of partial failures.
• PermissionedDEX: Lets token issuers limit trading to approved participants, helping with compliance.

What this means:
This is a strong positive for XRP, making the XRP Ledger more attractive for institutional DeFi projects and competing with platforms like Ethereum and Solana. (Source)

Conclusion

The recent XRP Ledger updates focus on scaling the network for large token projects and institutional use, while improving reliability. Although these changes might not immediately affect XRP’s price, they build a stronger foundation for real-world asset applications. The question remains: will regulated DeFi on the XRP Ledger outpace competitors in 2026?

What could affect the price of XRP?

XRP is currently caught between positive support from big investors and some technical challenges.

1. ETF Demand – Over $1 billion flowing into XRP ETFs is reducing the amount available on exchanges, which could push prices up (Bullish)
2. XRPL Upgrades – Planned 2026 improvements aim to add privacy and support for institutional decentralized finance, with mixed effects expected
3. Regulatory Environment – Growing global partnerships for central bank digital currencies (CBDCs) contrast with ongoing legal risks in the U.S. (Mixed Impact)

In-Depth Look

1. ETF Demand Reduces XRP Supply (Positive for Price)

Since October 2025, XRP spot ETFs have bought about 750 million XRP tokens, lowering the amount held on exchanges to 1.5 billion XRP (CryptoSlate). Big players like Evernorth now hold over 10% of XRP’s circulating supply in secure storage. This situation is similar to what happened with Bitcoin before its ETF launch, though XRP’s market share is smaller at 3.8%.

Why it matters:
When fewer tokens are available to trade, prices can rise if demand grows. ETF managers are locking away about 2.4 million XRP every day. To reach XRP’s previous all-time high of $3.66, it would take roughly $4 billion in new investment—an achievable target based on Bitcoin’s ETF history.

2. XRPL’s 2026 Upgrade Plans (Mixed Effects)

In early 2026, XRPL plans to introduce confidential Multi-Purpose Tokens (MPTs) using zero-knowledge proofs, which will allow private transactions. By the end of the year, protocol-level lending features will be added (RippleX). However, all network operators must update to version 3.0.0 by January, which could cause temporary disruptions.

Why it matters:
If these upgrades succeed, they could open the door to managing over $10 trillion in tokenized assets on XRPL. But delays or slow adoption might let competitors like Ethereum and Solana gain ground. Historically, XRP’s price tends to rise 60 to 90 days after major upgrades.

3. Regulatory Developments (Mixed Effects)

Sixteen countries now accept XRP for use in CBDC projects, showing growing international support. However, the U.S. Securities and Exchange Commission (SEC) still has a pending appeal related to a $50 million settlement, with a decision expected by March 2026. Meanwhile, the European Union’s MiCA regulations exclude XRP from securities classification but require strict compliance with transaction rules.

Why it matters:
Positive regulatory moves in Asia, such as Japan’s SBI adoption of XRP, help balance out U.S. legal uncertainties. If the SEC loses, XRP might face additional exchange reviews, but Ripple’s $25 billion reserve fund reduces the risk of major setbacks.

Summary

XRP’s future depends on whether the scarcity created by ETF demand can overcome current technical challenges—its Relative Strength Index (RSI) is at 38.8, below the 2025 average of 52. Watch the $1.80 support level closely; holding above it could signal accumulation ahead of the Q1 upgrades. The big question is whether XRPL’s focus on institutional use can counteract the cautious sentiment among retail investors. Keep an eye on weekly ETF inflows and how quickly validators adopt the new v3.0.0 software.

What are people saying about XRP?

Talk around XRP swings between worries about a technical drop and hope from bigger economic trends. Here’s what’s trending right now:

1. Year-end price target of $2.35 to $2.88 despite current weakness
2. Warnings of bearish signals on weekly charts
3. Whales selling $68.5 million daily, raising profit-taking concerns
4. Growing excitement over ETFs with 6 U.S. applications pending approval
5. Mixed short-term signals as the Relative Strength Index (RSI) nears oversold levels

Deep Dive

1. @bpaynews: Predicts $2.88 by December 31 🚀 bullish

"XRP is oversold and close to important support. If it holds at $1.85, a recovery to $2.35–$2.88 is likely."
– @bpaynews (2K followers · 419K impressions · 2025-12-25 09:31 UTC)
View original post
What this means: If XRP stays above $1.85, there’s a strong chance it could rise about 55% from the current price.

2. @CryptoWZRD_: Predicts sideways movement with downside risk 🧙‍♂️ bearish

"Below $1.9750 is bearish territory. XRP may retest $1.82 unless it decisively moves above $1.95."
– @CryptoWZRD (105K followers · 19K impressions · 2025-12-24 03:50 UTC)
[View original post](https://x.com/cryptoWZRD/status/2003674665164886019)
What this means: Short-term outlook is negative with about 7% downside risk if key support breaks, matching XRP’s recent 24% drop over 60 days.

3. CoinMarketCap Analysis: Whales selling XRP daily 🐳 neutral

"Top 10% of holders are selling $68.5 million XRP daily — the highest since November 2024. 90% of XRP supply is currently profitable."
– CoinMarketCap Community (30M+ monthly users)
View article
What this means: This is a neutral to bearish sign — big holders selling could push prices down, but inflows from ETFs totaling $974 million this year help offset the selling pressure.

4. @CobakOfficial: ETF interest grows 🇺🇸 bullish

"Six spot XRP ETF applications are under review by the SEC. Approval could bring in over $5 billion in new investments."
– @CobakOfficial (58K followers · 1.4M impressions · 2025-12-26 01:45 UTC)
View original post
What this means: This is a positive long-term factor — Brazil’s XRP ETF launch saw $58 million in volume on day one, indicating strong potential for the U.S. market.

5. @Finora_EN: Key price zone $1.89–$1.95 ⚔️ mixed

"Immediate resistance is at $1.93. Closing above this level daily is needed to challenge the bearish trend."
– @Finora_EN (5.8K followers · 63K impressions · 2025-12-22 07:13 UTC)
View original post
What this means: The technical outlook is neutral — there’s about 4% upside potential to resistance and 3% downside risk to support from the current $1.85 price.

Conclusion

Opinions on XRP are mixed right now, balancing oversold technical signals against selling by large holders and hopes for ETF approvals. Bulls are aiming for a rally above $2.35 by year-end, while bears warn of a possible drop below $1.82. The $1.85–$1.89 price range is critical — a clear move above or below this zone could set the tone for December. Also important: XRP’s 30-day correlation with Bitcoin is -0.73, meaning XRP tends to weaken unless Bitcoin’s dominance in the market changes.

What is the latest news about XRP?

XRP is caught between growing interest from big investors and skepticism from everyday traders, as inflows from ETFs (exchange-traded funds) meet resistance in price. Here’s the latest update:

1. Record ETF Inflows (Dec 29, 2025) – $424 million flowed into XRP ETFs in December, yet the price dropped 15%.
2. Technical Breakdown (Dec 30, 2025) – XRP struggled to hold the $1.90 support level and is now trading lower amid bearish signals.
3. Supply Squeeze Potential (Dec 29, 2025) – About 750 million XRP have been taken off exchanges, with ETFs locking up liquidity.

Deep Dive

1. Record ETF Inflows (Dec 29, 2025)

Overview:
In December 2025, XRP investment products saw $424 million in inflows, adding up to over $1 billion since October. The first U.S. spot XRP ETF, Canary Capital’s XRPC, manages more than $300 million. Despite this, XRP’s price fell 15% during the month. Large institutions like BNY Mellon and SBI are moving XRP tokens into cold storage (offline wallets), reducing the amount available on exchanges by 750 million XRP since November.

What this means:
This gap between strong institutional buying and falling prices suggests big investors believe XRP is undervalued for the long term, while everyday traders are selling off. With fewer tokens available for trading, price swings could become more extreme if demand picks up. However, so far, ETF inflows haven’t been enough to overcome weak price trends. (CryptoSlate)

2. Technical Breakdown (Dec 30, 2025)

Overview:
XRP fell below a key support level at $1.90 and is now trading around $1.85. Analysts point to bearish signals like moving average crossovers and lower highs since November. The $1.80 to $1.85 range is critical—if XRP falls below this, it could drop further toward $1.50. Resistance (price ceilings) is seen between $2.05 and $2.20.

What this means:
On-chain data shows weak demand, and more XRP is flowing back onto exchanges, indicating selling pressure. Until XRP climbs back above $2.05, rallies may face resistance. Bitcoin’s steady price above $90,000 might help XRP in the short term, but overall, XRP’s price structure looks fragile. (AMBCrypto)

3. Supply Squeeze Potential (Dec 29, 2025)

Overview:
ETF custodians and Ripple’s recent acquisitions (Hidden Road, GTreasury) have removed about 750 million XRP from exchanges. Only 1.5 billion XRP remain in liquid reserves—the lowest since 2020.

What this means:
If retail traders start buying again out of fear of missing out (FOMO), this limited supply could push prices higher. However, current social sentiment is low, indicating little excitement. The upcoming Clarity Act in 2026 could boost demand from banks, making early 2026 a key period to watch. (Bitcoinist)

Conclusion

XRP’s outlook depends on the tug-of-war between institutional buying and bearish market trends. While ETFs show confidence in XRP’s long-term value, technical signals warn of possible further declines. Watch the $1.80 support level and ETF inflow trends closely to see if shrinking exchange liquidity will fuel the next rally or if broader market challenges will hold XRP back.

Why did the price of XRP fall?

XRP dropped 2.28% to $1.85 over the past 24 hours, continuing a 16.3% decline over the last 30 days. This fall matches a general weakness in the crypto market (which saw a 2.06% drop in total value) but also reflects specific challenges for XRP itself.

1. Big Holder Selling (Bearish Effect) – Large investors have sold 1.18 billion XRP since December 15, increasing selling pressure.
2. Technical Weakness (Bearish Effect) – XRP’s price was rejected at a key resistance level of $1.90 and is now trading below important moving averages.
3. ETF Demand vs. Retail Selling (Mixed Effect) – Institutional investors have put over $1.2 billion into XRP spot ETFs, but retail investors are still selling, balancing out the demand.

In-Depth Analysis

1. Increased Selling by Large Holders (Bearish Effect)

Summary:
On December 19 alone, large holders transferred 116 million XRP to Binance (Darkfrost via TradingView), part of a total 1.18 billion XRP moved to exchanges since mid-December. These inflows to exchanges are at their highest levels since 2025, indicating profit-taking and possible panic selling.

What this means:
Big holders, often called “whales,” are responsible for 94% of recent XRP trading volume (CryptoQuant). This heavy selling creates pressure on the price, especially since fewer buyers are stepping in, making the market more vulnerable to price drops.

What to watch:
If the daily XRP deposits to exchanges slow down from the current 35 million to 116 million XRP, it could mean that selling pressure is easing.

2. Weak Technical Signals (Bearish Effect)

Summary:
XRP fell below its 200-day exponential moving average (EMA) of $2.41 back in November and is now trading below all major moving averages. The $1.87 support level, based on Fibonacci and pivot points, failed to hold on December 29. The Relative Strength Index (RSI) is at 38, indicating the coin is oversold, but there are no signs yet of a price rebound.

What this means:
Since July, XRP has been making lower highs, confirming a long-term downward trend. Attempts to rally, like the 3% increase to $1.92 on December 28, were quickly met with selling, showing that bears remain in control.

Key level to watch:
A daily close above $1.90 (December’s volume-weighted average price or VWAP) is crucial to challenge the current bearish trend.

3. ETF Investments vs. Retail Selling (Mixed Effect)

Summary:
Since November, spot ETFs for XRP have attracted over $1.2 billion, locking up around 700 million XRP in custody. However, retail investor sentiment is at a 9-month low (Santiment), and XRP balances on exchanges increased by 12% in December.

What this means:
While institutional investors are accumulating XRP, retail investors are selling in large amounts, especially noticeable on platforms like Bitfinex, which saw a 66% drop in XRP holdings. This ongoing retail selling delays any supply shortage that might support prices.

Conclusion

XRP’s recent price drop is driven by heavy selling from large holders, weak technical support levels, and a disconnect between institutional buying and retail selling. Although ETF inflows indicate long-term confidence from institutions, the short-term outlook remains bearish until exchange reserves stabilize.

Key points to monitor:
Watch whale wallet activity and the $1.80 to $1.85 support zone closely. If XRP breaks below this range, it could trigger automated selling that pushes the price down toward $1.50.