XRP Plummets 25% in 2026 Amid Macro Uncertainty and AI-Driven Capital Shift

• XRP's price has fallen 25% at the start of 2026, trading at $1.35 with a market cap of $82 billion, driven by reduced investor confidence and macroeconomic uncertainties according to analysis.
• The shift of capital toward AI infrastructure is increasing selling pressure on XRP and other cryptocurrencies, as investors prioritize emerging tech sectors over crypto assets as reported.
• Ripple's integration of XRP into its payment network and competition with SWIFT has not been sufficient to counter valuation pressure amid economic uncertainty according to market analysis.

Bitcoin ETFs are experiencing significant weekly outflows, while XRP ETFs are recording inflows, indicating a divergence. Bitcoin's price is declining below $70,000 due to sustained outflows and bearish technical patterns, while XRP remains 63% below its multi-year highs according to market data. Geopolitical risks and uncertainty around Federal Reserve policy are amplifying the divergence, making ETF flow monitoring critical.

Rising geopolitical tensions and uncertainty around monetary policy are creating a challenging environment for cryptocurrencies, potentially pushing XRP toward $1. XRP remains a cross-border payment enabler via Ripple's network, with partnerships with hundreds of financial institutions and . While Bitcoin and Ethereum have declined in 2026, XRP's institutional adoption provides a fundamental floor for the token, supported by SWIFT's exploration of blockchain technology.

What Factors Are Driving XRP's Price Downward in 2026?

XRP's price has been affected by macroeconomic uncertainties, including rising inflation and potential interest rate hikes, which are causing investors to shift funds. Capital rotation toward AI has increased selling pressure on crypto assets like XRP, exacerbating downward trends. Ripple's integration of XRP into its payment network has not been enough to offset broader economic concerns, as investors remain cautious.

What Role Do ETF Flows Play in XRP and Bitcoin's Divergent Performance?

Bitcoin ETFs have faced $360 million in weekly outflows and $4.1 billion in net withdrawals year-to-date, contributing to Bitcoin's price decline. In contrast, XRP ETFs have seen $51.3 million in inflows during early February, highlighting divergent institutional flows. This divergence suggests a shift in institutional sentiment, with XRP being perceived as a more strategic investment.

What Are the Key Technical and Fundamental Indicators for XRP's Future Price Movement?

XRP is currently trading at $1.49 with a neutral RSI of 42.97 and key resistance at $1.54. A potential recovery to $1.60-$1.80 could occur if XRP breaks above its current consolidation zone, . Finbold's AI-driven price prediction tool forecasts an average XRP price of $1.50 on March 1, 2026, with bullish projections from ChatGPT and Grok, and a bearish outlook from DeepSeek.