XRP (XRP-USD) has notched some serious gains over the past year, with the token having climbed more than 407%. Yet, despite a massive run-up, the cross-border payments-focused cryptocurrency still sits 22% below the all-time high achieved back in 2018.
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Top investor Chris Neiger counts several catalysts that could propel the coin beyond that milestone. A “major potential driver” is the possibility of SEC approval for spot XRP ETFs, which would simplify access for investors looking to track and invest in the token.
Beyond that, XRP already serves practical purposes. Major financial institutions, including PNC Bank in the U.S. and Santander in Europe, use it as a bridge currency for international payments. Broader adoption of Ripple’s On-Demand Liquidity (ODL) network could further strengthen demand and support XRP’s long-term value.
“However,” the 5-star investor goes on to add, “XRP is not without its challenges. Several headwinds could push its value lower before it ever approaches its previous high of $3.84.”
For one, Neiger thinks the token’s steep rise could prompt speculative investors to take profits, putting downward pressure on the token. History shows how volatile it can be – after peaking at $3.84 in January 2018, XRP lost 86% by year’s end. And while it has real-world utility in cross-border payments, much of its recent demand stems from the fact that it has shown a “strong upward trajectory.” “Without compelling new catalysts to sustain momentum,” Neiger expounded, “these speculative holders may decide to sell, creating pressure that could push XRP lower in the near term.”
Second, all the good news might “already be priced in.” Positive developments don’t always lift XRP’s price if the market has already anticipated them. For instance, after the SEC dropped its lawsuit against Ripple Labs – a big deal – the token still slipped about 10% in the following weeks. “This muted reaction suggests that the market had largely anticipated the news, and much of the potential upside was already reflected in the price,” Neiger explained. Looking ahead, milestones like wider institutional adoption or potential ETF approval might have only limited short-term impact unless accompanied by fresh, unexpected catalysts to “reignite investor enthusiasm.”
But the biggest short-term risk for XRP, says Neiger, is a weakening U.S. economy. Recent job data has fallen well below expectations, raising concerns that investors could retreat from riskier assets like cryptocurrencies. History shows XRP reacts quickly to economic stress – during the 2022 inflation spike it stayed “well below” $1 for a long period, and in April 2025, it fell about 15% in a week after the tariff news. While the coin eventually rebounded, these swings highlight its volatility.
“For anyone thinking about buying XRP right now,” Neiger summed up, “it might be wise to watch the economy closely and be prepared for potential short-term dips before considering an entry.” (To watch Neiger’s track record, click here)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.