XRP Outlook Slashed: Standard Chartered Lowers Forecast From $8 To $2

Overview

Standard Chartered, a prominent British financial institution, has significantly revised its price forecast for XRP, the fourth-largest cryptocurrency. The bank has lowered its end-of-2026 target for the token by 65%, reflecting the adverse conditions currently affecting the broader cryptocurrency market.

Price Outlook Revision

The updated prediction indicates that Standard Chartered now anticipates XRP to reach $2.80 by the end of 2026, a substantial decrease from its previous forecast of $8. This adjustment comes in light of a recent downturn in the crypto market over the past month, which has prompted a reevaluation of price expectations across various digital assets. At the time of the report, XRP had shown a modest recovery of 2% over the past week, trading at approximately $1.47 per token. However, this short-term rebound has not altered the bank’s overall negative outlook.

Geoffrey Kendrick, who leads the bank’s digital assets research team, detailed these changes in a note to investors. He acknowledged the challenges posed by recent market conditions, stating that the current price action in digital assets has been difficult. Kendrick expressed expectations for further declines in the near term, leading to a broader reassessment of forecasts not only for XRP but for the entire cryptocurrency sector.

Factors Influencing the Revision

The initial price target of $8 was established in December, a time when Standard Chartered had a more optimistic view of the market. The positive sentiment was buoyed by increasing regulatory clarity regarding XRP’s classification as a financial asset and anticipated advancements in exchange-traded fund (ETF) products that could positively impact the token’s value. However, the optimism faded following a significant market crash on October 10, which disrupted the stabilization of market sentiment.

As February approaches, the overall cryptocurrency market has struggled to achieve a sustained recovery, leading Standard Chartered to adjust its forecasts for other major cryptocurrencies as well. Bitcoin’s expected price has been lowered from $150,000 to $100,000, while Ethereum’s forecast dropped from $7,000 to $4,000. Additionally, Solana’s target was revised down from $250 to $135.

From author

The drastic revision of XRP’s forecast by Standard Chartered underscores the volatility and uncertainty that currently permeate the cryptocurrency landscape. As financial institutions reassess their outlooks, it becomes evident that market conditions can heavily influence predictions, regardless of previous optimism. The interconnected nature of these markets means that developments in one area can lead to cascading effects across others, highlighting the need for investors to remain vigilant and informed.

Impact on the crypto market

• Standard Chartered’s revision may lead to decreased investor confidence in XRP and other cryptocurrencies.
• The lowered expectations for XRP could set a precedent for other financial institutions to follow suit, potentially resulting in a broader market slump.
• The reassessment reflects ongoing challenges within the crypto market, indicating a prolonged period of uncertainty.
• The adjustments to forecasts for major cryptocurrencies may influence trading strategies and investment decisions among traders and institutional investors.
• The overall sentiment in the cryptocurrency market could be further dampened as expectations shift downward across various digital assets.