XRP dropped to $1.80 on Jan. 25, its weakest level since mid-December, giving back the gains it had built earlier in January. The move came during a broader crypto sell-off tied to tariff tensions and growing macroeconomic uncertainty, which pushed risk assets lower across the board.
On a weekly basis, XRP’s losses moved past 5%. The report said the decline wiped out billions of dollars in market value. XRP had started 2026 at $1.84, then rallied to reclaim the $2.40 level by Jan. 6. That strength did not last. After a short period holding above $2, the trend turned on Jan. 19 and the token slid back to $1.95 as the wider market weakened.
Tariff headlines and Fed uncertainty weighed on sentiment
The article linked the reversal to a market-wide retreat. Tariff comments from U.S. President Donald Trump were cited as an early catalyst. Even after those threats were later pulled back and global equities saw brief relief, crypto assets stayed under pressure. XRP spent much of the following week hovering just above $1.90, with little sign of strong buying support.
Investors were also reacting to the latest personal consumption expenditures, or PCE, data, which added to uncertainty around the Federal Reserve’s next policy steps. Fresh weekend tariff threats aimed at Canada added another layer of pressure. Taken together, those factors pushed traders away from risk.
Bitcoin fell to $86,000 as large-cap altcoins followed
Bitcoin led the sell-off. After moving close to $90,000 heading into the weekend, it fell to $86,000 by Sunday afternoon. That drop pulled total crypto market capitalization down to the key $3 trillion support area.
The weakness spread across other major tokens. Ethereum briefly fell to $2,787, BNB lost more than 1% to trade at $855, and Solana slipped to $117. After the initial wave of selling, dip-buying activity helped total market capitalization recover to $3.04 trillion. XRP stabilized around $1.87, but only a narrow margin remained above its Jan. 1 opening price.
Technical setup points to a possible move within 21 days
As of 1:30 a.m. EST on Jan. 26, XRP was described as being in a fragile equilibrium. Its daily relative strength index, or RSI, was around 44 to 47, showing weak momentum. The MACD line remained below the signal line, though the histogram suggested selling pressure was easing. Traders were watching for a bullish crossover that could open the way back toward $2.
The report also said technical analysts see XRP trading in a falling wedge, or compression pattern. Under that view, a more decisive move could arrive within the next 21 days: a break above $2.12 would revive the January rebound structure, while an escalation in macro tensions could send the token down toward $1.61.