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XRP fell to $1.80 on Jan. 25—its lowest level in seven weeks—as renewed tariff threats from President Donald Trump and concerns over Federal Reserve policy triggered a broad retreat across cryptocurrency markets.
The decline erased most of the token’s early January gains, which had briefly lifted XRP above $2.40 before sentiment soured on macroeconomic uncertainty.
The XRP price crash coincided with renewed tariff threats from U.S. President Donald Trump, which unsettled global markets over the weekend.
Speaking earlier this month, Trump warned of aggressive trade measures if negotiations failed, stating that the United States would take “very substantial action” against trading partners it views as unfair, according to public remarks reported by U.S. media.
Market participants interpreted the rhetoric as a renewed risk to global growth and cross-border capital flows, prompting a retreat from higher-risk assets, including cryptocurrencies.
Bitcoin, which had approached the $90,000 level earlier in the week, slid sharply to around $86,000, dragging the broader market lower and intensifying the XRP price crash.
At the same time, investors remained cautious ahead of upcoming U.S. inflation data, particularly the Federal Reserve’s preferred personal consumption expenditures (PCE) index.
The Federal Reserve has repeatedly stressed that policy decisions will remain data-dependent.
Fed Chair Jerome Powell has previously said the central bank is “prepared to maintain restrictive policy if inflation does not continue to move sustainably toward 2%,” a stance that has kept risk appetite fragile.
As bitcoin retreated, total crypto market capitalization briefly fell toward the critical $3 trillion support level, amplifying losses across major altcoins and accelerating the XRP price crash.
XRP began the year trading near $1.84, before rallying above $2.40 by Jan. 6 as optimism built around broader crypto market momentum.
That advance, however, proved short-lived. By Jan. 19, selling pressure had emerged across digital assets, pulling XRP back below $2 and setting the stage for the deeper XRP price crash that followed days later.
The sell-off intensified as bitcoin weakness spread contagiously through the market.
Ethereum briefly dropped to $2,787, while other large-cap tokens such as BNB and Solana also recorded notable declines.
According to exchange data, leveraged positions were rapidly unwound, compounding downside pressure during periods of thin liquidity.
Despite a modest rebound that lifted total market capitalization back above $3.04 trillion, XRP struggled to regain traction.
The token consolidated around $1.87, leaving it only marginally above its opening price for the year and highlighting how the XRP price crash has erased nearly all early-January gains.
Following the XRP price crash, technical indicators suggest the market has entered a fragile equilibrium.
As of early Jan. 26, XRP’s relative strength index (RSI) hovered between 44 and 47, signaling neither deeply oversold nor convincingly bullish conditions.
The moving average convergence divergence (MACD) indicator remained below its signal line, though narrowing spreads suggested selling momentum may be easing.
Traders are closely watching whether XRP can reclaim the $2 level, which previously served as a psychological support zone.Failure to do so could expose the token to further downside if macro pressures intensify.
Conversely, a sustained improvement in risk sentiment could allow XRP to stabilize and attempt a recovery from the XRP price crash.
Macro developments remain the dominant variable. Trump has repeatedly emphasized his willingness to escalate tariffs if trade talks stall, saying the administration would act “very strongly” to protect U.S. interests, according to earlier public comments.
Combined with persistent geopolitical tensions and uncertainty over the Fed’s policy path, these factors continue to cap upside across crypto markets.
For now, the XRP price crash stands as a reminder that digital assets remain tightly linked to broader macro forces.
As February approaches, traders are bracing for continued volatility, with XRP’s next decisive move likely to depend less on token-specific fundamentals and more on the evolving global economic backdrop.
