Prediction: Ripple's XRP Will Be a Buy Before 2027

Right now, it's hard for crypto investors to get excited about XRP (CRYPTO: XRP). The world's sixth-largest cryptocurrency is down 34% for the year, and currently trades at a 65% discount to its 52-week high from last summer. Even worse, XRP is at serious risk of dipping below the $1 mark.

But all is not lost. There are several catalysts that could help to push the crypto higher by the end of the year. In fact, I'm predicting that it will become a strong buy as we head into January 2027.

What could move the needle with XRP?

Admittedly, everything that was supposed to move the needle with the price in 2026 has come up short. Most glaringly, the new spot XRP exchange-traded funds (ETFs) -- which were launched to much critical acclaim at the end of last year -- have failed to stop the downward momentum.

These ETFs were supposed to attract billions of dollars from institutional investors, helping to push up the price of XRP. Over $1.2 billion has flowed into these ETFs, but that's a far cry from the $8 billion predicted at the start of last year.

The other big factor was supposed to be institutional adoption. In short, banks and financial institutions are starting to use the XRP blockchain ledger for more than just cross-border money transfers and liquidity management. Over time, the XRP token will be increasingly integrated into the traditional financial system as new uses are created.

Image source: Getty Images.

To make that a reality, Ripple, the company behind the XRP token, has spent over $3 billion on crypto- and blockchain-related transactions. And top Ripple executives have promised that investors in the crypto who are willing to wait out the process of transformation -- as all this blockchain-powered financial infrastructure gets built -- will be "very happy" within the next few years.

The Clarity Act

That's why I'm pinning my hopes on the rollout of new crypto legislation: the Digital Asset Market Clarity Act. Arguably, of any major cryptocurrency, XRP has the most to gain from passage of this new legislation. That's because the Clarity Act has one primary goal: make it much easier for banks, corporations, and institutions to work with crypto without fear of regulatory reprisals.

XRP is already known as "the banker's coin," and the Clarity Act should help to cement that narrative. It could give XRP a leg up on blockchain competitors. And it will help to ensure that all the crypto pieces put together by Ripple work together.

What to look for next

The new Clarity Act is supposed to pass sometime this summer, with the White House targeting a July 4 date. If so, that could become the linchpin event that changes the crypto investment narrative for XRP.

Is that too much to hope for? Perhaps. After all, XRP has continually overpromised and under-delivered for more than a decade. But as they say, good things come to those who wait. With XRP trading at a price of just $1, now could be the time to buy.

Dominic Basulto has positions in XRP. The Motley Fool has positions in and recommends XRP. The Motley Fool has a disclosure policy.