XRP saw a notable decline this week, dropping below the $2 threshold for the first time in days amidst a broader market selloff. The token traded at $1.95 on Monday after experiencing six continuous days of losses. This downturn can be primarily attributed to heightened anxiety in the market following President Trump’s threats of new tariffs on European nations over the purchase of Greenland.
This unexpected geopolitical tension sent shockwaves throughout the cryptocurrency sphere, with Bitcoin plunging to $92,000 and Ethereum wavering near the $3,000 support level. The resulting market-wide selloff led to a staggering $788.9 million in liquidations of long positions, with Bitcoin contributing $224 million to this figure. For XRP specifically, $39.5 million in long positions were liquidated, marking the highest level of liquidations since November 2025.
Despite the price drop, institutional interest in XRP remains robust. U.S.-based spot XRP ETFs recorded impressive inflows, totaling $1.12 million just last Friday, and an aggregate of $1.28 billion this month. Total assets in XRP ETFs reached $1.52 billion, reflecting ongoing demand from institutional investors even amid cooling retail sentiment.
The XRP Ledger has been seeing heightened activity as well, with transactions surging to a six-month high of 2,575,561 on Wednesday. This spike in network usage demonstrates that, despite the price drop, users are actively engaging with the XRP ecosystem. More than 1.78 billion XRP were traded around the $1.96 level in the past six months, as revealed by cost basis distribution data from Glassnode.
Market Dynamics and Critical Support Levels
XRP has decreased by 18.5% from its recent peak of $2.41 on January 6, now testing key support levels around $1.96. Analysts, including market expert Dom, suggest that XRP needs to recover the $2.05 mark to regain a secure position, pointing to a previous uptick from January 1 to 6 as lacking in solid market support.
$XRP is facing critical resistance.
Many believe current levels around $1.80 to $1.78 are the last bastions of support, as significant accumulation occurred in this zone. Failure to hold above could lead to a decline toward $1.61, previously tested in October.
— Dom (@traderview2) January 19, 2026
The price’s relative strength index recently hit a low point for 2026, indicating a growing downside trend and the potential to test even lower support. The recent selloff has diminished XRP’s yearly gains to 7.12%, as many early January gains have been wiped away.
As traders continue to navigate these turbulent waters, the disparity between on-chain activity and price performance remains stark. The focus on macroeconomic factors, particularly geopolitical tensions, looms over the market as it grapples with uncertainty.
The reactions to XRP’s movements indicate that while sentiment may be teetering, there are fundamental undercurrents worth monitoring. As we move forward, the critical price levels will be pivotal in dictating XRP’s trajectory amidst a challenging landscape.
