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XRP slid below $1.75 on Friday, January 30, after higher United States producer prices and rising Federal Reserve uncertainty sparked a broad crypto market sell-off. The token closed at $1.7326, extending a sharp shift in near-term momentum after two sessions of heavy losses.
Investors also weighed President Donald Trump’s nomination of Kevin Warsh as Federal Reserve Chair, which added fresh policy questions for risk assets. Meanwhile, renewed concerns about a United States government shutdown reinforced caution and weighed on crypto demand.
United States producer prices (PPI) came in hotter than expected for December, weakening expectations for a first-half 2026 rate cut. Headline PPI rose 3% year-on-year, matching November’s pace.
Core producer prices climbed 3.3% year-on-year, up from 3.1% in November. Consequently, traders trimmed risk exposure and reassessed the timing of any Federal Reserve easing.
Producer price trends can feed into consumer inflation when companies pass costs to households. The analysis indicated that the stronger core reading supported Federal Reserve Chair Jerome Powell’s preference for meeting-by-meeting decisions based on incoming data.
This rate reset hit XRP at a vulnerable moment on the chart. Sellers pushed the token through a key psychological level, while buyers showed limited urgency to step in.
Trump’s nomination of Kevin Warsh introduced another source of uncertainty for markets. The analysis indicated that traders expect Warsh to reflect the administration’s preference for lower rates, yet still see him as more hawkish than other potential candidates.
Crypto sentiment also reacted to Warsh’s past public stance on digital assets. The analysis indicated that Warsh has described cryptocurrencies as “worthless,” while viewing Bitcoin as a store of value.
That contrast carried implications for XRP because any strategic reserve asset discussion would involve several stakeholders. Analysts indicated the Federal Reserve would be among those required to approve such a move, alongside Congress and the United States Treasury.
Price action showed a clear split across major tokens during the downturn. Bitcoin fell 0.54% on January 30, while Ethereum dropped 4.08%, and XRP posted steeper losses in the same sell-off.
Meanwhile, shutdown risk added a separate drag on sentiment. The analysis indicated that a shutdown could slow progress on the Market Structure Bill, which traders associate with clearer rules and potential support for XRP demand.
XRP fell 4.03% on Friday, January 30, following a 5.37% drop the previous day. The token closed at $1.7326, while the broader crypto market cap declined 1.2% over the session.
The sell-off left XRP trading below both the 50-day and 200-day exponential moving averages (EMAs). The analysis indicated that this placement reflects bearish momentum and confirms a trend reversal from the recent upswing.
Key support levels sit at $1.70 and then $1.50. On the upside, 50-day EMA resistance stands at $1.9901, with 200-day EMA resistance at $2.2643.
According to analysts, reclaiming the 50-day EMA would improve the near-term structure and signal a possible bullish reversal. It also pointed to $2.2 as a level that could open a path toward $2.5 and the 200-day EMA.
Liquidation cascades can amplify price moves when support levels break. The market showed limited stabilization, as brief bounces met renewed selling.
Also Read: Ripple CTO Explains Why Cheap XRP Can Hurt Network Efficiency
