Overview

• XRP price is struggling below $2.00 due to liquidations, weak momentum, and overall Crypto Market pressure.

• Federal Reserve signals and macro uncertainty are reducing risk appetite for assets like XRP.

• ETF growth has not yet created strong buying demand, keeping XRP in a fragile range.

XRP price has dropped below the important $2.00 level, showing weakness in the wider crypto market. In January 2026, the token traded lower with many daily closes under $2.00 and intraday lows near $1.87. 

This move removed part of the gains from late 2025 and raised worry among short-term traders. Not staying above $2.00 is seen as a technical problem, as that level had worked as strong support in recent weeks.

Market activity shows the fall was mainly caused by profit-taking and panic selling. Many traders who bought during the last rally started to sell when the price began to drop. This added more pressure and made the fall faster than expected. Overall market sentiment turned cautious as XRP failed to recover its momentum.

XRP Liquidations Increase Selling Pressure

A major factor behind the decline was a liquidation event in mid-January. On January 18, XRP dropped quickly from around $2.06 to nearly $1.91 in a short time. This happened after key support near $2.05 was broken. Large numbers of leveraged positions were forced to close, which increased selling volume and added to market fear.

This type of move shows how fragile price action can become when many traders use borrowed money. Once stop-loss levels were hit, automated selling pushed the price lower. The fast fall damaged confidence and made investors more careful about entering new long positions. Volatility also rose during this period, making price swings more unpredictable.

Also Read: XRP Repeating 2022 Crash Pattern: Can $2 Support Save It?

Macro Conditions Weigh on Crypto

Global economic conditions also played a role in XRP’s weakness. Investors were watching signals from the US Federal Reserve about interest rates and future policy direction. Higher rate expectations usually hurt risk assets such as cryptocurrencies. As a result, many digital assets moved lower together, including XRP.

The market environment became more defensive, with money flowing into safer investments. This reduced demand for altcoins and limited XRP’s ability to recover quickly. Even positive developments in the crypto sector were not enough to overcome these macro pressures. This shows that XRP remains sensitive to global financial trends, not only internal network factors.

ETF Growth Has Not Boosted Price Yet

One positive development for Ripple’s altcoin is the launch and expansion of spot XRP ETFs in late 2025 and early 2026. These funds allow institutional investors to gain exposure through regulated products. This is seen as a major structural improvement for the asset and could support long-term demand.

However, ETF inflows have been uneven so far. While some funds reported activity, it has not been strong enough to counter the selling pressure from traders and liquidations. The market expected a faster impact from ETFs, but price action shows that new investment flows take time to influence value. For now, ETF support remains a future hope rather than a current driver.

Regulation No Longer the Main Issue

The long legal battle between Ripple and US regulators ended in 2025, removing a major uncertainty around XRP. For years, legal risk held back adoption and investor confidence. With that issue mostly resolved, the asset now trades more in line with general market conditions.

Also Read: Will Ripple (XRP) Become the Next Amazon? 2026 Outlook

XRP Price Prediction: Market Data Shows Weak Momentum

XRP is still one of the biggest cryptocurrencies by market value, with its market cap staying in the triple-digit billion range. Trading volume is still high, but the price momentum has become slower compared to the highs seen in late 2025. Several daily closes below $2.00 during the last week of January show that upward strength is getting weak.

Experts do not fully agree on what will happen next. Some believe ETF demand and real-world payment use will help XRP move back above $2.00. Others say ongoing macro pressure and more liquidation events may keep the price stuck in a tight range. 

Until strong buying interest returns, XRP will remain sensitive to sudden market shocks and short-term fear in the market.

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FAQs

1. Why is XRP trading below $2.00?

XRP fell below $2.00 due to heavy selling, liquidation of leveraged positions, and weak market sentiment.

2. How did the Federal Reserve affect XRP price?

Federal Reserve rate signals pushed investors away from risky assets, which caused pressure on the Crypto Market and XRP.

3. Did ETFs help XRP price recover?

ETF launches improved market structure, but inflows have been slow and not strong enough to lift the price yet.

4. Is regulation still a problem for XRP?

No, major legal issues were resolved in 2025, so regulation is no longer the main concern for XRP traders.

5. What is the outlook for XRP now?

XRP may remain volatile and range-bound until stronger demand or better macro conditions return.