Ripple XRP is currently on a bearish streak, falling 4.7% in the past week. However, analysts still remain bullish that the asset is ready to streak in 2026, and could start that rally before this year ends. An XRP breakout is drawing attention right now as the cryptocurrency approaches a critical technical inflection point. With Fibonacci levels targeting gains as high as $27 and ETF inflows surpassing $1.18 billion, market conditions are aligning for a significant move in the coming week.

Crypto analyst Keertivasan took to TradingView, highlighting that XRP’s correction phase could end, leading to an uptick in price. According to his price prediction, XRP could reach $4.22, with even further gains coming after the new year that could target $5. The analyst also claims that liquidity hunting could occur at these levels for XRP. “XRP/USD is in a correction phase in the weekly time frame. A lot of liquidity needs to be hunted before the next impulse. Once liquidity hunting is done, a strong impulse with the mentioned target in the chart is expected,” he writes.

Ripple XRP’s recent rally could be due to increased ETF inflows. XRP ETFs saw approximately $30 million in inflows on Thursday, Dec. 18, 2025. ETF inflows have played a key role in the market cycle of 2025. Bitcoin (BTC) and Ethereum (ETH) climbed to new peaks in 2025 due to high ETF inflows. A similar pattern could emerge for XRP as well. Another reason for XRP’s rally could be that investors are buying the dip. The asset’s price fell to $1.77 on Dec. 17, the lowest price level since April of this year. The cheap rates may have become attractive to investors buying for the long term.

On the flip side, analysts at CoinCodex don’t see Ripple XRP hitting the $5 until the end of this decade. “In 2029, XRP (XRP) is anticipated to change hands in a trading channel between $ 2.40 and $ 6.11, leading to an average annualized price of $ 3.22. This could result in a potential return on investment of 221.31% compared to the current rates.”

While such a rally would be welcome, near term, it is unclear if XRP can reclaim the $2 mark or not. The market is still quite fragile, and fresh volatility could wreak havoc at any moment. Given that investor sentiment is still down, there is a high chance that we are looking at a dead cat bounce and are nowhere near the end of the bear market.