XRP could retest all-time high by 2026, Hilton says volatility to persist

Recent XRP price action and market factors

Hilton explained that XRP surged more than 28% over the past month, though the majority of those gains were followed by consolidation rather than a sustained rally. At one point, XRP climbed over 50% in just 36 hours, a move Hilton attributed to the US Treasury Department’s announcement of planned bond buybacks ranging from $2 billion to $4 billion. The quick rally was partly reversed when prices stabilized shortly after.

The asset initially shot up more than 50% in a day and a half, but then surrendered a portion of those gains as sideways trading returned.

Hilton pointed out that recent US monetary policy shifts and legislative actions have created a complex climate for the crypto market. The Senate’s failure to advance the CLARITY Act and a Federal Reserve interest rate increase are among the developments Hilton believes have contributed to recent volatility.

The CLARITY Act is a legislative proposal meant to provide clearer regulatory guidelines for cryptocurrencies in the US. Its failure to clear a Senate vote leaves regulatory uncertainty hanging over the industry.

Mini dictionary: CLARITY Act, a proposed US bill aiming to clarify the legal status and regulation of digital assets; its passage is seen as important for investor confidence and market stability.

Bank of Japan’s rate decision and implications

Hilton also highlighted the significance of the Bank of Japan’s upcoming decision on interest rates. Market expectations suggest a possible rate hike, which he noted could influence global carry trades.

Carry trades typically involve investors borrowing money at lower rates in Japan and investing in higher-yielding international assets including equities, gold, and digital currencies. Hilton stated that a rate increase by the Bank of Japan may raise borrowing costs and prompt some traders to liquidate positions in various assets, including cryptocurrencies such as XRP, to repay their yen-denominated loans.

While Hilton did not predict a market crash, he emphasized that rising Japanese rates could contribute to short-term selling pressure in the crypto sector. He expects volatility and a lack of clear market direction to persist heading into October, alongside continued consolidation.

Even with choppy markets and modest bullish sentiment, the absence of strong liquidity may prolong the period of sideways action for XRP, making patience essential for holders.

Looking ahead: XRP and wider crypto market prospects

Despite the uncertain short-term outlook, Hilton expressed optimism about XRP’s long-term trajectory. He projected that XRP could reclaim its all-time high of $3.60 by the end of 2026, assuming favorable macro conditions and a recovery in Bitcoin’s price.

Hilton linked this forecast to a potential surge in Bitcoin back toward its $126,000 all-time high during the fourth quarter. He suggested that such a move could renew retail interest and encourage capital flows from sectors like technology and gold into digital assets, including XRP.

He also referenced the possibility of new liquidity entering the market in late 2026, which he believes could drive overall crypto prices higher as 2027 approaches.

However, Hilton cautioned that several variables could impact this outlook. Ongoing geopolitical tensions between Iran and the US, the outcome of the October US elections, and any further Federal Reserve rate increases all present uncertainties for the crypto market.

Austin Hilton is known for his regular market analysis across multiple digital channels, providing insights on cryptocurrencies and macroeconomic developments.