XRP s Price Plunge Amid Broader Crypto Sell-Off

On January 25, XRP experienced a significant drop, falling to 1.80, its lowest point since mid-December. This decline erased nearly all gains made in 2026 and was part of a larger cryptocurrency sell-off driven by tariff tensions and macroeconomic uncertainty.
The sell-off saw XRP briefly dip to 1.80, resulting in over 5 weekly losses and a substantial loss in market capitalization. XRP started 2026 optimistically at 1.84 and even rallied to 2.40 by January 6. However, this momentum was short-lived. After a brief consolidation above the 2 support level, XRP began to decline on January 19 due to a broader market retreat triggered by U.S. President Donald Trump s tariff provocations.
Although the withdrawal of these tariff threats provided temporary relief for global equities, the cryptocurrency market remained under pressure. XRP struggled to stay above 1.90 for the rest of the week, hindered by ongoing macroeconomic uncertainty. Investors were increasingly wary of the Federal Reserve s future actions following recent personal consumption expenditures PCE data, and new tariff threats targeting Canada further dampened risk appetite.
Bitcoin led the market decline, dropping from nearly 90,000 to 86,000, which pulled the total cryptocurrency market capitalization down to the critical 3 trillion support level. Other major altcoins also suffered Ethereum fell to 2,787, BNB decreased to 855, and Solana retreated to 117. However, following the sell-off, there was a wave of buy-the-dip activity that helped the total market capitalization recover to 3.04 trillion.
For XRP, this recovery took the form of a consolidation phase around 1.87. While it managed to stay above its January 1 opening price, the profit margin is now very slim, leaving room for further volatility as February approaches. As of January 26, XRP was in a fragile equilibrium with the relative strength index RSI around 44 to 47 and the moving average convergence divergence MACD line below the signal line, although the histogram showed signs of fading selling pressure.
Technical analysts noted that XRP is currently in a falling wedge or compression pattern, suggesting that a decisive move is expected within the next 21 days. This could either be a breakout above 2.12 to reclaim the January rally or a final drop towards 1.61 if macro tensions escalate.