New York, Jan 20, 2026, 06:29 EST — Premarket
XRP, the token linked to Ripple Labs, dipped under $2 on Tuesday, slipping roughly 2% in the last 24 hours to about $1.93. During that period, it fluctuated between $1.92 and $2.03, with trading volume near $3.0 billion, according to 6 .
The pullback followed traders scaling back risk exposure after U.S. President Donald Trump renewed tariff threats targeting several European nations amid his bid to secure Greenland. Amelie Derambure, senior multi-asset portfolio manager at Amundi, called the move “precautionary profit-taking and some risk reduction.” 1
Crypto followed the broader market mood. Bitcoin fell 2.2%, while ether dropped 2.9% during Asian trading. IG analyst Tony Sycamore noted that investors are offloading dollar assets amid “fears of prolonged uncertainty.” 2
In XRP, selling pressure gained a mechanical boost: CoinDesk detailed a liquidation cascade that drove the price down from around $2.06 to near $1.91 as leveraged positions were forcibly closed. Liquidations happen automatically when traders’ borrowed bets turn sour. 3
The $2 mark has gained outsized significance for short-term traders, largely because round numbers often draw stop-loss orders and quick trades. Once that level cracks, price swings can accelerate rapidly.
XRP remains under a regulatory microscope following the U.S. Securities and Exchange Commission’s 2020 lawsuit against Ripple Labs over unregistered securities sales. In August, the SEC announced it was closing the case, maintaining a $125 million fine and an injunction, Reuters reported. 4
The danger is that today’s drop could escalate into a full-blown leverage sell-off if tariff news stiffens into actual policy, or if climbing yields continue to curb risk appetite. XRP tends to swing sharply in thin markets, with price moves often driven more by forced selling than new buying interest.
Traders are eyeing if XRP can break back above $2, while the wider crypto market tries to find footing before the Fed’s upcoming policy meeting on Jan. 27-28. 5
