XRP Price: Token Drops Below $2 as Trump Tariffs Take Effect February 1

TLDR

• XRP dropped below $2.00 for the fifth straight day, reaching $1.85 as tariffs and regulatory concerns weighed on the market
• President Trump announced 10% tariffs on eight European countries starting February 1, threatening a potential trade war
• The US Senate Banking Committee postponed its markup vote on the Market Structure Bill after Coinbase withdrew support
• XRP experienced $864 million in crypto market liquidations over 24 hours during the broader market correction
• Despite current weakness, analysts maintain medium-term price targets between $3.00 and $3.66 based on legislative optimism

XRP fell to $1.97 on January 19, extending a five-day losing streak that pushed the token below the psychologically important $2.00 level. The decline follows President Trump’s announcement of new tariffs on European nations and delays in crypto legislation.

Trump declared 10% tariffs on eight European countries including Germany, France, and the UK, set to take effect February 1. These tariffs will increase to 25% by June 1 as the president pushes for Greenland acquisition. The EU is preparing up to €93 billion in retaliatory tariffs.

The tariff announcement sent US stock futures lower on Monday morning. The Dow Jones E-mini dropped 0.66% while the Nasdaq 100 E-mini fell 1.08%.

XRP and other crypto assets remain exposed to trade war risks. The token previously plunged 15.29% in October 2025 when Trump threatened 100% tariffs on China.

The US Senate Banking Committee postponed its markup vote on the Market Structure Bill last week. Coinbase withdrew support for the draft legislation after amendments emerged that would eliminate stablecoin rewards.

Stablecoin Debate Creates Uncertainty

US banks warned that permitting stablecoin rewards could trigger over $6 trillion in deposit outflows from the banking system. Bloomberg Intelligence ETF Analyst James Seyffart questioned the banks’ argument, pointing to existing high-yield savings accounts offering 3% or more.

XRP rallied from $1.81 to $2.42 in early January when the Banking Committee first announced the markup vote. The token then reversed course, falling to $1.85 after the committee postponed the vote.

Despite the setback, Armstrong expressed optimism about reaching the right outcome. He stated the company will continue working with lawmakers on crypto legislation.

Market Conditions Weaken

The broader crypto market recorded $864 million in liquidations over the past 24 hours. Bitcoin fell from $97,000 to $92,000 during the same period.

According to CoinGecko data, XRP declined 4.1% in 24 hours and 6.2% over the past week. The token is down 39.4% since January 2025 but maintains a 3.8% gain in monthly charts.

Geopolitical tensions surrounding Greenland contributed to market weakness. NATO countries offered military support to Denmark to defend Greenland against potential US takeover attempts.

Investors shifted toward safer assets like gold and silver as crypto markets struggled. The October 2025 crash continues to impact market recovery.

Price Targets Remain Optimistic

Strong demand for XRP spot ETFs continued through January despite the price decline. Analysts maintain bullish medium-term outlooks based on expected US crypto legislation.

Medium-term price targets stand at $3.00 for four to eight weeks and $3.66 for eight to twelve weeks. Technical support levels sit at $1.85, $1.75, and $1.50.

CNBC called XRP the “hottest crypto trade of 2026” in recent reporting. The token celebrated its 14th anniversary this year with some analysts projecting a potential rise to $4.50.

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