XRP slid below the $2.0 psychological level as US-EU tariff risks and Market Structure Bill delays hit crypto sentiment. A fifth straight daily loss pushed XRP toward $1.85 support, reflecting rising geopolitical and regulatory uncertainty. Despite near-term pressure, optimism over US crypto legislation supports medium-term targets of $3.0 and $3.66. Delays to the US Senate Banking Committee’s Market Structure Bill markup vote triggered a sharp pullback from a January 6 high of $2.4151.
However, increased geopolitical tensions added to the negative sentiment. US President Trump announced fresh tariffs over the weekend, reviving the risk of a US-EU trade war. XRP and the broader crypto market previously came under selling pressure as President Trump rolled out tariffs in 2024. Crucially, XRP dropped below the $2.0 psychological level, despite strong demand for XRP-spot ETFs through January.
Nevertheless, the medium-term outlook remains bullish. Strong demand for XRP-spot ETFs, the progress of the Market Structure Bill, and increased XRP utility reaffirm a cautiously positive short-term outlook (1-4 weeks), with a $2.5 price target. Medium-term (4-8 weeks): $3.0. Longer-term (8-12 weeks): $3.66.
The Bank of Japan announces a hawkish neutral interest rate (potentially 1.5%-2.5%), signaling multiple rate hikes. A yen carry trade unwind would invalidate the short-term outlook. US economic indicators and the Fed are dampening expectations of an H1 2026 rate cut. US lawmakers roadblock the Market Structure Bill, delaying crypto legislation.
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