The broader cryptocurrency sell-off on Jan. 25 saw XRP briefly tumble to a low of $1.80, its most depressed price point since mid-December. This sudden capitulation saw XRP’s weekly losses swell past 5%, effectively vaporizing billions in market capitalization and every gain achieved since the start of the year.

XRP entered 2026 with quiet optimism, trading at $1.84. By Jan. 6, that optimism evolved into a full-scale rally as the token reclaimed the $2.40 psychological barrier. However, the momentum proved fragile. After a brief period of consolidation above the $2 support floor, the tide turned Jan. 19. A broader market retreat, catalyzed by U.S. President Donald Trump’s tariff provocations, dragged XRP down to $1.95.

Read more: XRP Sinks as Breakdown From Range Signals Sustained Bearish Momentum

While the subsequent withdrawal of those tariff threats provided a temporary reprieve for global equities, the “cryptosphere” remained underwater. XRP languished just above $1.90 for the remainder of the week, stifled by a toxic cocktail of macroeconomic uncertainty. Investors grew increasingly skittish over the Federal Reserve’s upcoming trajectory following the latest personal consumption expenditures (PCE) data, while fresh weekend tariff threats targeting Canada further soured risk appetite.

The contagion was led by bitcoin. After flirting with the $90,000 mark heading into the weekend, the benchmark asset tumbled to $86,000 by Sunday afternoon. This retreat acted as an anchor, dragging the total crypto market capitalization down to the critical $3 trillion support level.

The carnage was widespread among high-cap altcoins. Ethereum flash-crashed to a low of $2,787, while BNB shed over 1%, sliding to $855. Solana retreated to $117. However, in the immediate aftermath of the sell-off, a wave of apparent “buy-the-dip” activity helped the total market capitalization claw back to $3.04 trillion.

For XRP, this recovery manifested as a consolidation phase around $1.87. While the digital asset has managed to keep its head above water relative to its Jan. 1 opening price, the margin of profit is now razor-thin, leaving the door open for further volatility as February approaches.

As of 1:30 a.m. EST on Jan. 26, XRP is navigating a “fragile equilibrium,” with the relative strength index ( RSI) hovering around 44 to 47 on the daily chart. The moving average convergence divergence ( MACD) line remains below the signal line, though the histogram is showing signs of fading selling pressure. Analysts are watching for a bullish crossover as a signal for a recovery toward $2.

With the digital asset now deemed to be in a “falling wedge” or “compression” pattern, technical analysts suggest a decisive move is coming within the next 21 days—either a breakout above $2.12 to reclaim the January rally or a final “flush” toward $1.61 if macro tensions escalate.

• Why did XRP drop on Jan. 25? XRP fell to $1.80 due to a broader crypto sell-off triggered by global tariff tensions.
• How did XRP perform earlier in January 2026? It rallied to $2.40 before losing momentum and sliding below $2 support.
• What role did macroeconomics play in XRP’s decline?
  Tariff threats and Federal Reserve uncertainty fueled investor risk aversion.
• What’s next for XRP’s price trend?
  Analysts see a falling wedge pattern, with a breakout or flush likely within 21 days.

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