As the altcoin market experiences a resurgence, XRP has struggled to gain momentum, consolidating between $2.70 and $3 for the past two weeks.\u00a0<\/p>\n
Despite the excitement surrounding potential exchange-traded funds <\/a>(ETFs) that could invest in the altcoin if approved, The Motley Fool has cautioned that the current market correction may persist longer than many anticipate.<\/p>\n In a recent analysis, the firm attributed <\/a>some of XRP\u2019s lackluster performance to a general malaise in the cryptocurrency market, where traders are waiting for Bitcoin (BTC), the market\u2019s leading cryptocurrency, to lead a new price rally.\u00a0<\/p>\n However, two critical factors suggest that XRP may face a more prolonged downtrend than previously expected. The anticipated launch of new spot crypto ETFs has been a focal point of discussion since the beginning of the year.\u00a0<\/p>\n Several asset managers have submitted applications to the Securities and Exchange Commission (SEC) to create spot XRP ETFs, with Bloomberg estimating a 95% approval chance<\/a> and online prediction markets estimating 94%.<\/p>\n While approval seems likely, the real question revolves around the demand for these ETFs. XRP, currently the world\u2019s third-largest cryptocurrency, undoubtedly has some level of institutional interest, yet the actual inflows tell a different story.\u00a0<\/p>\n Data indicates that only $1.25 billion flowed into XRP from institutional investors during the first eight months of 2025. JPMorgan Chase has projected that the upcoming ETFs could attract between $4 billion and $8 billion into XRP.\u00a0<\/p>\n However, the firm asserts that even the lower end of this estimate might not significantly influence XRP\u2019s price action over the long-term, given its current market capitalization<\/a> of $180 billion.<\/p>\n While there is considerable optimism among analysts regarding XRP\u2019s future, with some price predictions suggesting it could reach new record prices<\/a> of up to $4, $5, or even $10, the firms noted that these projections do not account for the risks of short-term price declines.\u00a0<\/p>\n According to crypto betting platform, Polymarket, there is a 32% chance of XRP dropping to $2.50 this year, a 30% chance it could fall to $2.40, and a 27% chance of plummeting to $2.\u00a0<\/p>\n These statistics indicate that XRP could continue to drift lower over the next few months before any meaningful recovery takes place, potentially not occurring until 2026.<\/p>\nWarns Of Prolonged Downtrend<\/h2>\n
Recovery For XRP May Not Occur Until 2026<\/h2>\n