Ripple XRP Price: Seven Days of Red as Global Tensions Mount

TLDR

• XRP has dropped for seven straight days, falling below $1.95 as bearish pressure continues
• The XRP ETF market saw $53.32 million in outflows on January 20, only the second time since launch in November
• Rising Japanese Government Bond yields and a snap election announcement in Japan fueled liquidity concerns across crypto markets
• President Trump’s 10% tariff threat against eight NATO members triggered risk-off sentiment in global markets
• Despite current weakness, analysts maintain medium-term targets of $2.50 to $3.66 based on ETF inflows and legislative optimism

XRP price has extended its losing streak to seven consecutive days. The cryptocurrency traded below $1.95 on January 21 as bearish pressure mounted across global markets.

The price decline saw XRP spike below $1.88 before forming a low at $1.8681. A brief recovery pushed the price above $1.90, but bears maintained control. XRP now trades below its 100-hour Simple Moving Average.

A bearish trend line has formed with resistance at $2.00. For any meaningful recovery, XRP needs to break above this level.

The US XRP-spot ETF market recorded net outflows of $53.32 million on January 20. This marked only the second day of outflows since the ETFs launched on November 14. Total net inflows since launch now stand at $1.22 billion.

The Grayscale XRP ETF saw the largest outflows at $55.39 million. The outflows reflected growing investor concerns about geopolitical risks.

Global Events Weigh on Crypto Markets

Japan’s Prime Minister Sanae Takaichi announced a snap election scheduled for February 8. The announcement sent 10-year Japanese Government Bond yields soaring. Higher JGB yields can reduce global market liquidity as bonds become more attractive to investors.

XRP has shown an inverse correlation with 10-year JGB yields. The correlation highlights market sensitivity to changes in Japanese bond markets. Concerns about Japan’s fiscal spending plans and its 240% debt-to-GDP ratio have pushed risk premiums higher.

President Trump announced a 10% tariff on eight European NATO members on January 17. The tariff threat triggered a flight to safe-haven assets across global markets. XRP and other cryptocurrencies remain sensitive to trade developments.

President Trump is scheduled to speak at the World Economic Forum in Davos on January 21. Any intensification of tariff threats could add further pressure to XRP prices.

XRP previously experienced a flash crash in October, plunging from $2.8406 to $0.7773 before recovering. President Trump’s threat of a 100% tariff on China triggered that sell-off.

Technical Levels and Price Targets

The first resistance level sits at $1.95. Above that, major resistance appears at $2.00 and the trend line. A close above $2.00 could push XRP toward $2.05.

Further resistance levels include $2.10, $2.12, and $2.15. The next major hurdle for bulls would be near $2.20.

On the downside, initial support appears near $1.88. The next major support level is at $1.85. A break below $1.85 could send the price toward $1.82 and $1.80.

Analysts maintain cautiously bullish short-term targets despite current weakness. The one to four week target sits at $2.50. Medium-term targets for four to eight weeks reach $3.00. Longer-term targets over eight to twelve weeks extend to $3.66.

These targets rely on several factors including increased XRP utility and continued ETF demand. Optimism over crypto-friendly legislation from the Senate also supports the bullish outlook.

Several risks could challenge these projections. These include escalating tariff threats from President Trump, hawkish moves from the Bank of Japan, delays in crypto legislation, and continued ETF outflows. Any of these factors pushing XRP below $1.85 would signal a bearish trend reversal.

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