New York, Jan 21, 2026, 06:47 AM EST — Premarket.
XRP slipped below $2 Wednesday morning, dipping roughly 1.8% to $1.90. Over the past 24 hours, it fluctuated between around $1.88 and $1.94. The Ripple-associated token, ranked fifth by market cap, recorded about $3.4 billion in trading volume in that period. 1
This shift is significant as crypto starts tracking broader “risk” assets again — those sections prone to sell-offs when jitters rise. On Tuesday, U.S. stocks suffered their steepest single-day drop in three months after President Donald Trump brought back tariff threats. Bitcoin dipped over 3%, Reuters noted. 2
Bitcoin slipped 2.2% in the past 24 hours, hovering near $89,156, according to CoinMarketCap data. Ether fell 4.6%, trading around $2,965. Traders are closely eyeing whether bitcoin can stay above the $90,000 mark as U.S. trading hours get underway. 3
XRP’s drop came after it failed to stay above the $2.00 mark, a key psychological barrier for traders. CoinDesk reported Tuesday that the token pulled back once it couldn’t hold that level, shifting the short-term outlook to a more cautious stance. 4
Ripple President Monica Long laid out a vision on Jan. 20, saying the industry will hit a “production era” by 2026 as banks and corporations push past pilots. She highlighted stablecoins as the backbone of global settlement, calling out stablecoins, tokenized assets, crypto custody, and AI-driven automation as major trends. 5
XRP’s broader narrative revolves around U.S. regulation and Ripple’s ongoing legal battle with the Securities and Exchange Commission. Back in August, the SEC and Ripple reached a settlement to close the case over XRP sales, with Ripple agreeing to pay a $125 million fine, Reuters reported. 6
Policy changes have been spotty. The White House announced that the GENIUS Act — legislation setting up a U.S. framework for payment stablecoins — was signed into law in July 2025. 7
Volatility remains the key driver, with investors pulling back faster as macro headlines emerge. “This is more of a timing issue than a direction issue,” SkyBridge Capital founder Anthony Scaramucci told Reuters on Tuesday, commenting on crypto’s recent slide and the speed of policy shifts. 8
There’s a definite downside risk if the “risk-off” sentiment intensifies: crypto often behaves like a high-beta asset. Smaller tokens tend to react even more sharply than bitcoin when selling pressure ramps up. This dynamic fuels ongoing debate about whether bitcoin serves as a hedge or just another risk asset when markets turn turbulent. 9
Traders are eyeing the Federal Reserve’s policy meeting on Jan. 27-28 for cues that might move U.S. yields and the dollar—key factors that can impact crypto positions. The Fed’s schedule includes a press conference on Jan. 28. 10
Markets are gearing up for possible shifts at the Federal Reserve’s helm. U.S. Treasury Secretary Scott Bessent indicated that Trump might announce the next Fed chair “as early as next week,” a development that could shake up rate forecasts and stir risk sentiment. 11
XRP’s immediate test is if it can push back above $2 as U.S. trading picks up, or if it slips, risking a drop toward the low end of its recent range. Looking ahead, the key events to watch are the Fed’s meeting on Jan. 27-28 and the release of the minutes on Feb. 18, per the central bank’s official calendar. 12
