XRP Today's News: Trump's Tariff Threat Triggers Six Consecutive Drops, Can ETF Demand Save the Day?

XRP Today’s news shows a sixth consecutive decline, influenced by Trump’s threat to impose a 10% tariff on 8 European countries and the delay of the Market Structure Bill. XRP briefly fell to $1.8502, then temporarily rebounded to $2. Despite breaking below the 50-day and 200-day moving averages, the cumulative inflow of $1.3 billion into spot ETFs provides a bottom support, with a medium-term target of $3.0 and a long-term target of $3.66.

Trump’s Tariff Threat Triggers Sixth Day of Decline

On January 19, influenced by trade tensions and delays in cryptocurrency legislation, XRP declined for the sixth consecutive day. U.S. President Trump threatened over the weekend to impose tariffs on eight European countries. This threat triggered a large-scale sell-off in the cryptocurrency market. On Saturday, January 17, President Trump announced a 10% tariff on these countries, further intensifying the push to acquire Greenland. Denmark, Finland, France, Germany, Norway, Sweden, the Netherlands, and the UK are targeted countries.

Reports indicate that the EU is considering retaliatory measures, which could jeopardize the 2025 US-EU trade agreement and escalate the risk of a full-scale trade war. Kobe Communications commented on the EU’s potential response, stating: “French President Macron has called for the EU to activate its strongest trade weapons, following Trump’s tariff threats over Greenland. Macron now advocates using the EU’s anti-coercion mechanism. If used against the US, this mechanism would restrict US access to the EU market, potentially block US banks from operating in the EU, and may suppress US tech giants. This trade weapon has never been used before.”

US stock index futures opened sharply lower, triggering a broad sell-off in the crypto market. Within two hours of opening, XRP dropped from $2.06 to a low of $1.8502, then briefly rebounded to the January 19 high of $2.0283. XRP’s rebound indicates market expectations that the EU and US will reach an agreement. President Trump has previously used tariff threats to implement US policies, which may ultimately be resolved through negotiations.

Despite the rebound on January 19, the risks of a US-EU trade war could pressure market sentiment. The Guardian reports that the EU may impose sanctions on crypto companies, and EU leaders have agreed to delay the use of EU antitrust laws, hoping Trump will withdraw his threats. The 10% tariffs will take effect on February 1, marking a key point to observe whether the trade war truly escalates.

XRP and the entire crypto market remain highly sensitive to trade war threats. In October, President Trump threatened to impose 100% tariffs on Chinese goods. The crypto market immediately experienced a flash crash, with XRP plummeting from $2.8406 to $0.7773 on October 10, ultimately closing down 15.29% at $2.3756. This historical lesson shows that Trump’s tariff threats have significant destructive power on XRP, and investors should not underestimate this risk.

$1.3 Billion ETF Inflows as Major Bottom Support

Before Trump’s threats, XRP was already facing selling pressure. Investors reacted to the US Senate Banking Committee’s decision to delay hearings. XRP briefly fell to the day’s low of $1.8502, then temporarily rebounded to $2. Despite recent pullbacks, the medium-term outlook remains bullish. Strong demand for XRP spot ETFs, increased utility of XRP, and expectations of crypto-friendly legislation could tilt the supply-demand balance in favor of XRP.

Market demand for spot XRP ETFs is indeed notable. Companies that have launched such products include Canary Capital, Bitwise, Grayscale, Franklin Templeton, and 21Shares. Since their launch in mid-November, net inflows have approached $1.3 billion. This continuous capital inflow provides structural support for XRP, as ETF managers need to purchase XRP in the secondary market to meet subscription demands.

What does $1.3 billion mean? At the current price of about $2, this equates to roughly 650 million XRP tokens of buying demand. Considering XRP’s daily trading volume of approximately $20-30 billion, the ETF accumulated buy volume accounts for a significant proportion. More importantly, ETF investors are typically long-term holders, not trading frequently, meaning the XRP locked in ETFs is effectively removed from circulation, reducing available supply.

Three Major Support Roles of XRP Spot ETF

Structural Buying: Each subscription requires purchasing XRP on the market, providing ongoing demand

Supply Lock-in: XRP inflows into ETFs are held long-term, reducing circulating supply

Confidence Boost: The existence of institutional-grade products enhances XRP’s legitimacy and investor confidence

Meanwhile, news related to Ripple, central bank statements, and demand for XRP spot ETFs will influence recent price prospects. Market expectations of a Fed rate cut in March and a dovish, neutral rate stance by the Bank of Japan (possibly between 1%-1.25%) will boost market sentiment. The strong demand for XRP spot ETFs, increased XRP utility, and progress in market structure legislation will reinforce this constructive trend.

Technical Analysis: $1.85 as a Key Support Level

(Source: Trading View)

On January 19, XRP declined by 0.39%, after a 3.4% drop the previous day, closing at $1.9837. Compared to the overall crypto market, XRP faced less selling pressure, which declined by 1.27%. XRP has fallen for six consecutive days, breaking below the 50-day and 200-day moving averages, indicating a bearish bias. However, bullish fundamentals continue to offset technical disadvantages, limiting downside.

From the daily chart, breaking above $2.0 would pave the way for testing the 50-day moving average. Continued breakout above the 50-day MA would signal a short-term bullish reversal. After the bullish reversal, the target price would reach $2.2. Breaking above $2.2 is expected to test the 200-day moving average. Crucially, breaking above the EMA lines will solidify the medium- to long-term bullish price targets.

[XRP]# Key Technical Levels for XRP

Support Levels: $1.85, $1.75, $1.50

50-Day Moving Average Resistance: $2.0664

200-Day Moving Average Resistance: $2.3117

Resistance Levels: $2.0, $2.5, $3.0, $3.66

Avoiding sustained price drops below $1.85 is critical for the medium-short-term outlook. Bullish fundamentals, including spot ETF demand and XRP utility improvements, continue to counteract bearish technical signals, suggesting a short-term rebound. The rally since the December low of $1.7712 and the 7.48% increase in January further reinforce the bullish structure and short- to medium-term price expectations.

Breaking above $2.0 will allow bulls to target the upward trendline. Continued breakout above the trendline will confirm a bullish trend reversal and validate the bullish structure, supporting a medium-term (4-8 weeks) target of $3.0 and a long-term (8-12 weeks) target of $3.66. Conversely, if prices continue to break below the downward trendline, the bullish structure will be invalidated, indicating a trend reversal to bearish.

Although the Market Structure Bill has been delayed, the short-term (1-4 weeks) outlook remains cautiously optimistic, with a target of $2.5. The rising utility of XRP and strong demand for XRP spot ETFs remain key drivers. The Agriculture Committee will release the draft of the Market Structure Bill on January 23 and hold a vote on January 27, which could serve as an important catalyst next week.

( Major Downside Risks to Bullish Outlook

Several scenarios could challenge the optimistic outlook presented by today’s news. The Bank of Japan announced maintaining a hawkish, neutral interest rate (possibly between 1.5%-2.5%), implying multiple rate hikes in the future. Higher neutral rates could lead to unwinding of yen carry trades, reminiscent of mid-2024. US economic data and Federal Reserve signals are reducing market expectations of rate cuts in the first half of 2026. US lawmakers oppose the Market Structure Bill, delaying crypto legislation progress. XRP spot ETF reports show outflows.

These factors could pressure risk assets, causing XRP to break below $1.85, signaling a trend reversal to bearish. If this support fails, the next key support is at $1.75, with deeper support near $1.50. From current levels to $1.50, there is about a 25% downside risk, which must be considered in investment decisions.

In summary, these factors support a medium-term (4-8 weeks) price rise to $3.0. If the Fed cuts rates in March and the Senate passes the Market Structure Bill, the long-term (8-12 weeks) target will be set at $3.66. Looking ahead 12 weeks, favorable factors could push XRP to a new all-time high of $3.66 (Binance). If it breaks above $3.66, the future 6- to 12-month target could reach $5.

Recent upward price drivers include: XRP spot ETF capital flows, US economic indicators and Fed policy stance, progress in US crypto legislation, and headlines on US-EU trade news. Traders should closely monitor updates from the Banking Committee and Agriculture Committee, especially around the key dates of January 23 and 27.