XRP Bulls Just Got The Signal They Wanted

In Brief

• An analyst points to fresh macro data signaling economic expansion.
• Manufacturing trends and institutional activity are seen as supportive for XRP.
• Volatility risks remain despite improving conditions.

Bitcoin (BTC) and XRP have bounced off a recent market dip, but one analyst argues the bigger story is macro.

In his latest update, shared in a YouTube video on February 2, popular cryptocurrency market expert Zach Rector points to fresh economic data and policy momentum as signals that 2026 may shift back into expansion. As he explained:

“We weren’t just telling you that XRP and our crypto market were heading into expansion in 2026 because we wanted to deliver you some hopium at the end of the year and make you feel better. It was backed off the data. (…) We just got the data to confirm it.”

What Zach Rector Is Pointing To

Rector anchors his argument on the ISM Manufacturing PMI from the Institute for Supply Management. As he said:

“The January 2026 reading printed 52.6, above the 50 line that separates contraction from expansion, after a prior month reading below 50.”

He also claims earlier regional manufacturing surveys (Philly Fed and Empire State) turned positive before the national PMI improved, and he treats that sequence as a lead indicator for broader risk-on conditions.

On the crypto side, Rector highlights exchange-traded fund (ETF)-related demand for XRP, citing strong activity from Bitwise and Franklin Templeton, plus a large amount of XRP he says is held in ETF vaults. According to his video analysis:

“We’re still looking at 755 million XRP parked and backing these vaults. (…) We’re almost at 1% of the total XRP locked in the XRP ETF vaults. And this is why XRP trades at $1.64 this morning, a strong bounce.”

He frames that as institutional participation that can support liquidity even when flows wobble week to week.

Why It Matters For XRP And The Broader Market

For the time being, XRP is changing hands at the price of $1.62, which indicates a gain of 1.6% in the last 24 hours, despite losing 14.6% across the previous seven days, and accumulating a loss of 22.1% on its monthly chart, according to the most recent data.

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

Rector’s core claim is that, when manufacturing flips back into expansion, crypto has historically responded, especially during alt season phases. He expects 2026 to look more like a sustained cycle than a short burst, with policy catalysts (rate cuts, liquidity, legislation) acting as accelerants.

Still, he keeps a risk flag on the table. He warns that another sharp shakeout could happen before a cleaner uptrend resumes, driven by a sudden macro or legal headline:

“We could still see a mass capitulation event (…), one more black swan, Supreme Court rules on Trump tariffs, Iran strikes (…) that would bring XRP back down to maybe $1.20 or $1.30 (…), but after that, it’s going to be a V-shaped recovery.”

As a reminder, prominent fellow crypto expert CoinsKid earlier suggested that XRP bulls might be early with their enthusiasm surrounding the short-term bounces that had appeared across the market, warning about the dangers of premature optimism.

However, it seems that the moment to start celebrating is getting closer by the hour.