Despite the growing anticipation and developments surrounding XRP, the long-awaited boom has yet to materialize. According to Stern Drew, a crypto pundit and analyst, the reason lies in the current state of the U.S. economy, specifically the latest data from the ISM Manufacturing PMI for November.
The PMI came in at 48.2, below expectations of 49, signaling a continued contraction in the manufacturing sector. This economic slowdown is holding back the conditions needed for a significant price surge in crypto and XRP.
The ISM Manufacturing PMI is a key indicator used to assess the health of the manufacturing sector. The survey is based on feedback from over 400 manufacturers and covers aspects such as new orders, production, staffing, and supplier deliveries.
A reading above 50 signals expansion, while a figure below 50 points to contraction. The current reading of 48.2 suggests that the broader economy is still in a phase of slowdown, which is a crucial factor in XRP’s delayed rally.
Historical Precedents for XRP Rallies
Historically, XRP’s major price increases have been triggered when the manufacturing sector shows signs of economic strength. In both 2017 and 2021, XRP’s rallies began once the ISM PMI moved firmly above 50, signaling a shift toward expansion.
This is when key economic factors such as production, hiring, and demand started to pick up. As these conditions improve, liquidity in the financial system increases, providing a more favorable environment for risk assets like XRP.
THIS IS WHY THE XRP BOOM HAS NOT ARRIVED YET.
Everyone is wondering why XRP has not gone vertical despite all the fundamentals lining up. The answer just arrived in one number.
The U.S. ISM Manufacturing PMI for November printed at 48.2 which is below expectations of 49. That… pic.twitter.com/TX3neLuh4a
— Stern Drew (@SternDrewCrypto) December 1, 2025
Projected Timeline for the XRP Boom
The path to an XRP surge seems clearer when considering future economic trends. Stern Drew highlights several factors that could shift the current economic landscape. The anticipated rate cuts in 2026, combined with looser financial conditions and better liquidity, are expected to help the economy regain momentum.
Moreover, ongoing policy shifts favoring tokenized payments and digital settlement systems will play a crucial role in driving the broader adoption of XRP.
Additionally, the expansion of Ripple’s global corridors and positive regulatory developments in the APAC region add to the bullish case for XRP. Once the broader economy starts showing signs of expansion, particularly with the ISM PMI moving above 50, the conditions that powered previous XRP cycles will return. This economic recovery could trigger the XRP boom that many investors are waiting for.
Current Economic Outlook and Future Prospects
The current economic environment remains one of caution, with the ISM PMI indicating that manufacturing activity continues to contrast. However, as the economic conditions improve and liquidity expands, XRP’s long-awaited rally may finally take off, with the next phase of growth potentially beginning in the near future.