The Price Level XRP Must Regain to Return to a “Safe Zone”

XRP would have to reclaim a critical price level above the $2 psychological mark in order to return to a safe zone following the recent drawdown.

The broader crypto market has continued to struggle, facing renewed bearish pressure on the back of geopolitical tensions triggered by President Donald Trump’s latest tariff announcements. Amid this downtrend, the XRP price has collapsed, losing the $2 psychologically important level.

Notably, the recent bearish spell follows an earlier upward push engineered by XRP and the rest of the market from Jan. 1 to 6. Now, with the ongoing downtrend threatening to erase the gains from this earlier upward push, XRP would have to reclaim the $2.05 level to return to a safe zone.

Key Points

• After President Donald Trump announced new tariffs on European countries over Greenland, the crypto market reacted adversely.
• XRP suffered much of the impact, eventually losing the $2 psychological level, trimming its yearly gains to 7.12%.
• The latest downtrend follows an earlier recovery effort that saw XRP rebound by 30% from Jan. 1 to 6.
• With President Trump threatening additional tariffs on Greenland, the market is now facing renewed pressure.
• XRP would need to reclaim the $2.05 mark to cushion further declines from here and return to a safe zone.

XRP Struggles After 30% Rebound

For context, this area was highlighted by Dom, an expert market analyst. Notably, Dom was one of the few voices who raised concerns about XRP’s rebound campaign from earlier in the month. Specifically, after a disastrous Q4 2025, XRP and the crypto market staged a recovery push at the start of 2026.

The uptrend lasted for nearly a week, with XRP soaring to a 2-month peak of $2.41 by Jan. 6. This represented an over 30% increase from its 2026 opening price. However, on Jan. 6, Dom warned investors to be cautious, arguing that the upsurge did not come from “aggressive market buying.” He noted that a lack of real demand in the spot market showed that the rally was not sustainable.

Interestingly, XRP faced a pullback shortly after, dropping 1.87% on Jan. 6 and then a further 6.09% the next day. Since then, XRP has continued to decline, recording only one intraday gain over the last 14 days and collapsing 18.6% from the $2.41 peak. President Trump’s tariff threats have also exacerbated the situation.

XRP Must Reclaim $2.05 to Return to a Safe Zone

Now, in his recent market commentary, Dom reaffirmed that XRP’s earlier rally was not due to intense buying activity. Rather, it came from a relatively small capital influx, which leveraged a thin liquidity solution to influence price action. According to Dom, the rally did not witness any buyer support.

Dom stressed that XRP would need to recover toward reclaiming the $2.05 level for it to return to a “safe zone.” He noted that XRP had retested lows around the $1.8 level, which could represent one last expression of what appears to be a “bottom structure.” He believes the market could see steeper declines if XRP loses $1.8, with a run to $2.05 necessary to become safe.