XRP hasn’t had the smoothest run recently. The token is down around 22% year-to-date, hovering near the $1.40–$1.43 range after a prolonged downtrend. While the broader market has shown signs of recovery, XRP is still trying to break out of its consolidation phase. However, despite the downtrend, the Motley Fool, an American advisory firm, has highlighted XRP as a token worth watching over the next few years, even as its price remains under pressure in 2026.
That said, analysts say this slow movement could actually be a setup phase rather than weakness.
Reason 1: Regulatory Clarity Is Finally Here
One of the biggest overhangs on XRP is now gone. The long-running battle between the U.S. Securities and Exchange Commission and Ripple was settled in 2025, with appeals dismissed later that year.
This has substantially improved the regulatory outlook in the U.S.
According to the firm, this clarity could unlock institutional participation, especially if upcoming frameworks like the Digital Asset Market Clarity Act come into play. With fewer legal risks, institutions may feel more comfortable using XRP for cross-border payments, which could boost adoption heading into 2027.
Reason 2: Ripple Is Expanding Beyond Payments
The second big shift is Ripple’s strategy. Instead of focusing only on fast transactions, the company is now building a broader financial ecosystem.
This includes stablecoins, tokenized assets like U.S. Treasuries, and lending infrastructure, making XRP more relevant for real-world financial use. That kind of utility is what institutional players typically look for.
Institutional Demand Is Already Showing
Supporting this view, Crypto trader Vlad Anderson noted that XRP is already seeing early institutional inflows. Spot ETFs recently recorded around $17 million in a single day, with firms like Bitwise, Franklin Templeton, and 21Shares driving demand.
Price action remains steady, not explosive, something he sees as accumulation. If inflows continue, XRP could grind higher, though resistance around $1.9–$2.2 remains key.
For now, the case for XRP isn’t hype; it’s about slow, steady positioning for the next cycle.