The cryptocurrency market is experiencing heightened turbulence this week, with XRP leading the downturn as its price dropped by 10% in just seven days. Ripple’s native token, once trading above the critical $2.00 mark, now finds itself at around $1.89. The plummet is linked to geopolitical uncertainties brought on by global trade tensions and impactful remarks made by President Trump at the World Economic Forum in Davos.
Why Did XRP’s Price Drop?
The sharp decline in XRP can be traced back to President Trump’s controversial speech in Davos on January 21, 2026. His call for immediate negotiations over Greenland’s purchase coupled with threats of imposing tariffs of up to 25% on European allies sent ripples through global markets. Investors flocked to safer assets like gold, withdrawing from riskier ones, including cryptocurrencies like XRP.
Analyzing XRP Charts: Resistance and Support Levels
From a technical standpoint, XRP’s trajectory has moved from bullish to bearish. A failed attempt to break past the $2.14 resistance level resulted in consecutive downward spirals, with XRP logging seven straight red sessions—a scenario not seen since 2025. Analysts have identified $1.80 as a critical support zone, often called the ‘Triple-Tap’ line of defense. Breaching this level may lead XRP to further losses, potentially down to $1.61.
Technical Indicators Signal a Bearish Trend
Key indicators such as the Relative Strength Index (RSI) have dropped into the low 40s, showing an oversold market. Meanwhile, the MACD (Moving Average Convergence Divergence) displays a daily ‘death cross,’ hinting at extended bearish momentum. Additionally, over $40 million in XRP long positions have been liquidated in a short period, further driving the downside pressure.
Impact on the Cryptocurrency Market
The uncertainty triggered by Davos doesn’t only affect XRP. Leading cryptocurrencies such as Bitcoin and Ethereum are also facing corrections, although XRP’s sensitivity to geopolitical events makes it more vulnerable. Meanwhile, institutional investors are withdrawing from crypto markets to address volatility in traditional equities like the S&P 500.
What’s Next for XRP?
To regain bullish momentum, XRP must reclaim its position above $2.05 with significant trading volume. Until then, current market sentiment and external macroeconomic factors, like geopolitical threats and financial policy shifts, will dictate price movements. Investors should monitor both technical charts and global news to make informed decisions. Stay updated on changing trends and token prices with tools like the Cryptoticker dashboard.
Boost Your Crypto Strategy: Use the Right Crypto Wallet
Secure your XRP and other cryptocurrencies with a reliable hardware wallet. The Ledger Nano X, available on Ledger’s official store, is a top choice for securing digital assets with advanced encryption and user-friendly features. Investing in strong protection is a must during turbulent times in the market.
As XRP faces new challenges, understanding the underlying factors driving its price is crucial for seasoned traders and beginners alike. Optimizing your strategies with advanced insights and secure tools will help you navigate the evolving crypto market landscape.
