NEW YORK, Jan 20, 2026, 10:30 EST — Regular session
- On Tuesday, XRP remained under $2 amid a widespread risk-off sentiment gripping the crypto market.
- After a sharp reversal early in the week, traders flagged forced unwinds in leveraged bets.
- Focus shifts to tariff news and whether the top crypto tokens can hold steady.
XRP slipped Tuesday, staying under the $2 level amid a wider crypto retreat that shows no sign of letting up. The token last traded around $1.92, down roughly 2.9%, with the 24-hour range between $1.92 and $2.03, according to CoinMarketCap. 1
The latest drop stands out amid growing market jitters and fresh selling pressure in major cryptocurrencies. Bitcoin slid 2% to $91,090, while ether tumbled 3.3% to $3,104, as fresh tariff threats tied to Greenland rattled risk sentiment, Reuters reported. Tony Sycamore, a market analyst at IG in Sydney, noted that investors are offloading dollar assets over “fears of prolonged uncertainty.” 2
Tariff threats have turned into the macro trigger traders keep revisiting. U.S. President Donald Trump announced plans to slap an extra 10% tariff starting Feb. 1 on imports from eight European countries, jumping to 25% on June 1 if no agreement on Greenland is reached, according to Reuters. “It’s highly likely that the White House will use the threat of tariffs consistently,” said George Lagarias, chief economist at Forvis Mazars. 3
XRP’s drop accelerated after it couldn’t sustain gains, then plunged sharply. CoinDesk noted the token slid from roughly $2.06 down to $1.94, slicing through $2.05 support. It hit an intraday low near $1.906 before staging a rebound. 4
Derivative markets indicate this wasn’t just spot selling. CoinGlass data reveals around $9.2 million in XRP futures got liquidated in the last 24 hours, while open interest—the total value of active futures bets—stands near $3.4 billion. 5
Liquidations happen when exchanges shut down leveraged positions because a trader’s margin can’t cover their losses anymore. When the market moves quickly, these forced sell-offs can intensify the pressure, particularly if a large group of traders are all positioned similarly.
At the moment, $2 is the key level traders are watching. A swift recovery above that point might ease short-term jitters; if it stays below, attention shifts to whether Monday’s low can hold up.
XRP, the token tied to payments-focused crypto firm Ripple, remains sensitive to U.S. regulatory news after years of legal battles. In August, the U.S. Securities and Exchange Commission dropped its lawsuit accusing Ripple of selling unregistered securities but upheld a $125 million fine, Reuters reported. 6
The immediate risk is straightforward: a fresh macro shock pushing bitcoin down could pull the entire market along. XRP, in particular, has proven it can swing sharply when leverage unwinds. Low liquidity around crucial price points tends to amplify those moves.
Traders are eyeing if tariff talk eases before the Feb. 1 deadline for the proposed levies. Meanwhile, crypto’s biggest tokens are searching for a solid floor. XRP’s immediate challenge: retaking $2 without triggering more forced selling.
