Analyst Says XRP Consolidation Could Launch The 2026 Rally

In Brief

• An analyst says XRP’s consolidation may be an accumulation phase.
• Liquidity rotation has made crypto appear quiet rather than broken.
• XRP’s utility focus could matter in the next cycle.

The cryptocurrency industry may feel quiet, but according to one analyst, that boredom is exactly what makes the current market interesting, especially for XRP.

In a YouTube video streamed on February 10, Rector argues that crypto hasn’t lost relevance. Instead, attention and liquidity temporarily moved elsewhere, creating what he sees as an accumulation window ahead of a structurally different market phase in 2026. As he said:

“When something’s boring, when it’s not attractive or sexy, this is usually the best times to buy that asset. We saw the example with silver.”

Where the Liquidity Went And Why It Matters

Rector points to hard data showing that crypto exchange volumes peaked during prior cycle tops, including over $4 trillion monthly volume in mid-2021 and nearly $3 trillion during January 2025.

Since then, retail participation has faded, and liquidity rotated into equities and exchange-traded funds (ETFs), artificial intelligence (AI)-related stocks, precious metals, and prediction markets. According to Rector:

“Liquidity didn’t disappear, it rotated. Crypto exchange volumes broad-based decline since 2025. Retail participation largely exited. Small cap tokens with 90% drawdowns. And the capital rotation went to ETFs, equities, precious metals, and now prediction markets.”

This shift, he argues, explains why crypto underperformed in 2025. It wasn’t because the thesis broke, but because capital chased short-term narratives elsewhere.

Why 2026 Looks Different

According to Rector, the next phase of crypto will not resemble past retail-driven cycles. Instead, he expects fewer speculative tokens, more institutional participation, and a stronger focus on compliance, settlement, and real-world utility. As he said:

“This isn’t a pause. It’s a structural shift, and it’s something that I’m going to be taking advantage of.”

That’s where XRP enters the picture.

XRP’s Role As A Settlement And Bridge Asset

Rector emphasized that XRP sits at the center of Ripple’s long-term strategy, particularly as real-world assets and stablecoins move on-chain.

He highlighted the growing importance of RLUSD, Ripple’s dollar-backed stablecoin, noting that RLUSD operates on the XRP Ledger, every transaction burns XRP, and it brings off-chain liquidity directly onto crypto rails.

Without RLUSD, Rector said his outlook on XRP would be very different. In his words:

“RLUSD is so critical to funneling that liquidity back to the XRP Ledger. Without RLUSD, XRP Ledger would be in trouble.”

Yield, Infrastructure, Institutional Demand

Rector also pointed to a growing ecosystem of yield and infrastructure products being built around XRP and RLUSD, from vaults and money-market-backed strategies to institutional platforms preparing XRP-based yield offerings.

The key takeaway, he said, is optional utility and not yield chasing. As he highlighted, it’s possible to generate returns without selling your XRP, describing it as a sign of maturing infrastructure rather than speculative excess.

What This Means For Investors

Rector’s thesis is about positioning as opposed to short-term price action. From his perspective, crypto feels boring because retail exited, liquidity rotation created opportunity, XRP’s compliance-first design fits institutional needs, and 2026 favors utility-driven assets.

“I’m just showing you where the attention is at and the fact that it’s going to be coming back around to crypto. You don’t want to be with the rest of retail buying the top that was buying the top of XRP when it was above $3 in January 2025.”

For the time being, XRP is changing hands at $1.42, up 1.7% on the day, down 11.6% across the week, and declining 32.3% over the past month, according to the most recent price chart information.

*XRP price 7-day chart. Source: CoinGecko*

The Bottom Line

Zach Rector’s message is simple but uncomfortable. If crypto feels dull and ignored, then that’s the setup, not the failure. For XRP specifically, he sees the current phase as groundwork for a market cycle led by compliance and real-world adoption, not hype.