Standard Chartered Slashes XRP Forecast

British banking heavyweight Standard Chartered has sharply reduced its outlook for XRP, cutting its 2026 price target by roughly 65% to $2.80.

The revision marks a dramatic shift from its earlier projection of $8.00 and signals growing caution across the digital asset market.

The bank now warns investors to brace for “further declines” in the near term, citing a combination of ETF outflows and persistent macroeconomic headwinds. The downgrade follows February’s steep market selloff, which wiped billions from crypto valuations and triggered renewed volatility across major tokens.

In its latest commentary, Standard Chartered underscores that the crypto sector remains highly sensitive to shifts in liquidity conditions, interest rate expectations, and institutional appetite. Rather than predicting an immediate rebound, the bank anticipates additional pressure before any sustainable recovery can take hold.

ETF Outflows Signal Institutional Retreat

One of the key drivers behind the downgrade is the sharp decline in XRP-related exchange-traded fund inflows. According to the bank’s analysis, XRP ETF inflows have fallen 40% since January’s record $1.6 billion. Current inflows now sit just above the $1 billion mark, a significant drop that suggests institutional momentum is fading fast.

Institutional capital has played a central role in shaping crypto price cycles in recent years. When inflows accelerate, prices often follow. When they retreat, volatility intensifies. Standard Chartered interprets the current trend as a clear signal that large investors are stepping back amid uncertainty.

The collapse in ETF demand does not just reflect token-specific concerns. It points to broader hesitation across the digital asset space, as macroeconomic conditions tighten and risk appetite contracts. Institutional players appear to be reducing exposure rather than doubling down.

For XRP, which has historically relied on strong narratives around cross-border payments and adoption, the slowdown in ETF participation adds another layer of short-term pressure.

Macro Headwinds Weigh On Crypto Markets

Standard Chartered links its revised forecast not only to ETF outflows but also to ongoing macroeconomic challenges. Elevated interest rates, persistent inflation concerns, and tighter global liquidity conditions continue to shape investor behavior.

Cryptocurrencies, including XRP, remain classified by many institutional investors as risk-on assets. When central banks maintain restrictive policies, capital tends to rotate toward safer instruments. That dynamic places additional downward pressure on digital assets.

The bank suggests that until macro conditions stabilize or shift toward a more accommodative stance, upside potential may remain limited. Market participants are likely to demand stronger catalysts before reallocating significant capital back into crypto markets.

February’s selloff amplified those concerns. The sharp correction erased gains built earlier in the year and exposed the fragility of bullish momentum. Standard Chartered’s revised outlook reflects a cautious stance shaped by both technical weakness and macro uncertainty.

Broader Forecast Cuts Across Major Cryptocurrencies

While XRP headlines the downgrade, Standard Chartered also trimmed forecasts for other leading cryptocurrencies. The bank’s revised projections indicate a more defensive outlook across the board, signaling that the pressure extends beyond a single token.

Though XRP’s target suffered a particularly steep reduction, from $8.00 to $2.80, the broader theme centers on cooling enthusiasm and slower institutional participation. The bank believes near-term downside risk persists before any meaningful recovery can emerge.

This coordinated reduction suggests that Standard Chartered views the current environment as systemic rather than isolated. ETF flows, liquidity trends, and macro indicators collectively point toward caution.

Investors who previously anticipated rapid upside now face a recalibrated forecast that emphasizes patience. The bank does not dismiss long-term potential but highlights that the path forward may be more turbulent than initially expected.

Market Reaction And Investor Sentiment

The market has reacted swiftly to the revised outlook. Traders continue to monitor ETF flow data closely, recognizing its growing influence on price discovery. A 40% collapse in inflows since January’s peak reinforces concerns that institutional conviction has weakened.

Retail investors, meanwhile, face a mixed signal. On one hand, lower price targets may temper expectations. On the other, sharp corrections sometimes create entry opportunities for long-term believers.

Standard Chartered’s warning of “further declines” adds weight to the bearish case in the short term. By explicitly cautioning about continued downside, the bank sets expectations for volatility rather than stability.

Sentiment remains fragile. Until inflows recover or macro indicators shift decisively, the crypto market may struggle to regain sustained upward momentum.

Outlook Remains Uncertain

Despite the significant downgrade, Standard Chartered leaves room for eventual recovery. The bank acknowledges that crypto markets have historically rebounded from steep drawdowns once macro conditions improve and institutional confidence returns.

For now, however, the tone remains cautious. The sharp reduction in XRP’s 2026 target, down approximately 65%, signals a reassessment of both growth expectations and capital flows.

Investors will watch ETF data closely in the months ahead. A reversal in inflow trends could alter the trajectory quickly. Conversely, continued outflows would likely reinforce bearish pressure.

The crypto market has weathered multiple cycles of exuberance and contraction. Standard Chartered’s latest forecast reflects a recognition that the current phase leans toward contraction. Whether that phase deepens or stabilizes will depend on macro developments, institutional behavior, and broader risk sentiment.

For XRP holders and market participants alike, the message is clear: expect turbulence in the near term, prepare for volatility, and monitor the signals that drive institutional capital.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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