XRP extended its sharp decline on Jan 25, 2026, trading at $1.8452 by 1:21 p.m. Eastern, after breaking decisively below the lower end of its recent consolidation zone. The cryptocurrency slid steadily through the session, with selling pressure accelerating in the latest candles, marking a continuation of the broader pullback and confirming a bearish trend shift.
Technical Breakdown: From Range to Trending Decline
From a short-term perspective, the market transitioned from sideways consolidation into a clear bearish structure. Earlier, XRP attempted to stabilize around the $1.92–$1.93 area but repeatedly failed to hold, setting up a rollover. Subsequent selling pushed price through the $1.90 level, with brief pauses, before momentum carried it toward $1.88 and ultimately into the mid-$1.84 area. The sequence of lower highs (from ~$1.96 to $1.92) and lower lows (from ~$1.90 to below $1.85) confirms the breakdown. Volume expanded notably during the move from above $1.90 to the session low, lending credibility to the bearish continuation rather than a false breakdown.
Macro Headwinds: Trade War Escalation Crushes Risk Appetite
Broader macro forces intensified downside pressure. President Donald Trump threatened sweeping tariffs on Canadian exports in response to Ottawa’s deepening trade and electric vehicle ties with China, a move investors view as opening a new front in the global trade conflict and undermining confidence in North American trade frameworks. Lingering fallout from earlier Greenland-related trade rhetoric, along with bipartisan unease in Congress, reinforced perceptions of policy instability. Traders have shifted to a defensive posture, reducing exposure to volatile assets like XRP and favoring traditional safe havens.
Technical Indicators: All Bearish Signals Flashing
The Relative Strength Index (RSI) has slid to roughly 23, deep in oversold territory, underscoring the severity of the selloff. The Moving Average Convergence Divergence (MACD) remains below the zero line, with the MACD line below the signal line and negative histograms expanding, reflecting strengthening downside momentum. Price is trading well below both the 50-period and 200-period simple moving averages, confirming a bearish alignment. Bollinger Bands have widened, with price hugging the lower band near the mid-$1.80s, signaling elevated volatility and persistent selling pressure.
Key Support and Outlook
Unless price stabilizes and reclaims the midline of the Bollinger Bands, the technical outlook remains fragile. Failure to attract buyers above the $1.85 area would keep the bias lower. Any bounce would need to overcome resistance near $1.88, $1.90 and the declining moving averages above. For now, momentum and structure favor the bears, with the market still searching for a near-term floor.