XRP’s recent performance has sparked concern among investors as it fell below the critical $2.00 threshold for the fifth consecutive day, landing at $1.85. This downturn has coincided with economic anxieties stemming from President Trump’s new tariff policies and delayed regulatory action in the crypto space.
On January 19, 2026, President Trump unveiled a plan to impose 10% tariffs on a total of eight European countries, including major economies like Germany, France, and the UK. These tariffs, effective February 1, are set to increase to a staggering 25% by June 1, potentially escalating tensions into a full-blown trade war as Europe prepares retaliatory actions estimated to reach €93 billion.
This announcement triggered immediate responses in the markets, with US stock futures dropping sharply. The Dow Jones E-mini slid by 0.66%, while the Nasdaq 100 E-mini faced a more significant decline of 1.08%. The cryptocurrency market, particularly XRP, remains highly susceptible to such geopolitical complications. A similar pattern was observed back in October 2025, with XRP plunging 15.29% when Trump threatened to impose 100% tariffs on China.
Regulatory Headwinds and Market Liquidations
In addition to trade concerns, the US Senate Banking Committee recently postponed its vote on the contentious Market Structure Bill after Coinbase withdrew support, citing amendments that would eliminate rewards tied to stablecoins. This has stoked fears that the cryptocurrency landscape might face increased restrictions.
Coinbase CEO Brian Armstrong expressed his frustration with the proposed amendments, stating that they could effectively stifle competition by enabling banks to eliminate stablecoin rewards altogether.
As XRP fluctuated from $1.81 to $2.42 shortly after the initial announcement of the markup vote, its subsequent drop to $1.85 illustrates the volatility driven in part by legislative uncertainty. While some analysts suggest that medium-term price targets could rebound to between $3.00 and $3.66 owing to longer-term legislative optimism, the immediate outlook remains clouded.
Over the past 24 hours, the broader crypto market has reported approximately $864 million in liquidations, reflective of a corrective phase affecting several major assets. Bitcoin, for instance, has fallen from about $97,000 to $92,000 in this turbulent environment.
Investors Seek Safer Havens
Amid these troubling trends, XRP has reported declines of 4.1% within a day and 6.2% over the past week. Year-to-date, the token has plummeted by 39.4% but reveals a modest 3.8% gain on the monthly charts, suggesting some resilience in the face of adversity.
The bearish atmosphere is exacerbated by geopolitical tensions surrounding Greenland, as NATO countries extend military support to Denmark to safeguard its autonomy from US ambitions. In such uncertain times, investors are gravitating towards traditionally safer assets, such as gold and silver, as sentiment towards cryptocurrencies wanes.
Looking Ahead: Optimism Amid Challenges
Investor interest in XRP remains strong, particularly regarding the anticipated introduction of spot ETFs, which could revitalize the market despite the recent downturn. Analysts maintain bullish price targets, predicting recovery levels of $3.00 over the next month and potentially reaching $3.66 within three months. Key technical support levels for XRP stand at $1.85, $1.75, and $1.50.
Despite the current adversity, XRP was recently dubbed the “hottest crypto trade of 2026” by financial analysts. With ample room for potential growth, some foresee prices soaring up to $4.50 as the market stabilizes and legislative frameworks evolve.
The challenges ahead are significant, yet the enduring interest and speculative nature of the cryptocurrency market continue to drive engagement in XRP and its contemporaries.
