XRP Price Forecast Decreased by 65% by Standard Chartered

Standard Chartered has revised its year-end XRP price target by 65%, dropping it to $2.80 from the initial forecast of $8. This adjustment aligns with the general decline in the cryptocurrency market, representing one of the most severe downturns in nearly four years. Analysts at Standard Chartered pointed to the overall weakness in digital assets as the primary factor influencing their decision to lower the price projection.

XRP has encountered substantial obstacles in terms of pricing, depreciating to $1.16, its lowest value since late 2024 before making a minor recovery. This decline prompted the bank to reassess its expectations for XRP and other major cryptocurrencies. Geoffrey Kendrick, the global head of digital assets research at Standard Chartered, emphasized the ongoing price difficulties and cautioned about the possibility of further declines in the short run.

The downward revision in XRP’s year-end target reflects the broader challenges prevailing in the cryptocurrency market, as Bitcoin and Ethereum have also witnessed price drops. Standard Chartered has similarly modified its price targets for Bitcoin and Ethereum, reducing Bitcoin’s target from $150,000 to $100,000 and Ethereum’s from $7,000 to $4,000. Solana has also seen a decrease in its year-end price target, from $250 to $135.

Despite the struggles faced by XRP’s price, recent data on fund flows indicate continuing interest from institutional investors in the cryptocurrency. According to CoinShares’ weekly report, XRP received $33.4 million in inflows over the last week, albeit lower than the previous week’s $63.1 million. This suggests that although the overall interest in XRP persists, the momentum has slowed down in recent weeks.

The bank’s decision to slash its XRP price forecast coincides with a significant decrease in assets associated with XRP in ETFs. Total assets connected to XRP-related ETFs dropped by approximately 40% from $1.6 billion to around $1 billion between January and mid-February. These reductions signal caution among investors as they respond to the broader decline in the crypto markets.

Interestingly, XRP’s ETF maintained its appeal compared to Bitcoin and Ethereum ETFs, which experienced higher outflows. As a result, some analysts speculate that institutional investors might be reallocating their funds into specific altcoins like XRP rather than exiting the market entirely. For instance, Bank of America disclosed owning 13,000 shares of the Volatility Shares XRP ETF, indicating sustained interest in the asset despite the challenges in the broader market.

XRP has undergone substantial price fluctuations, characterized by sharp ups and downs in recent days. For instance, over the weekend, XRP surged from $1.53 to a peak of $1.66, marking a 9% increase within five hours, before dropping back to $1.44 by the evening. This volatility was primarily linked to trading activity on Upbit, South Korea’s largest cryptocurrency exchange, which recorded over $600 million in XRP trading volume, surpassing both Bitcoin and Ethereum.

Market analysts have pointed out that Upbit’s order books potentially influenced XRP’s recent price movements. Data from Dom, a market analyst, revealed that the exchange exerted significant selling pressure on the XRP market, leading to a sharp price decline following the brief rally. Nevertheless, investigations into the trading activity on Upbit found no indications of manipulation or wash trading, indicating that the price fluctuations were driven by genuine market activity from both retail and institutional traders.