XRP Today's News: Trump cancels tariffs ending 7 consecutive declines, breaking through $2 soon

XRP Ends 7 Consecutive Declines, Rebounds 3.13% on January 21 to close at $1.9463. Trump cancels EU tariffs boosting risk appetite; Ripple CEO Garlinghouse advocates for crypto legislation at Davos. The market structure bill is scheduled for voting on January 27, with a technical target breaking through $2 and challenging a new high of $3.66.

Trump Cancels Tariffs Ending XRP 7-Day Drop

XRP has ended its seven-day decline after U.S. President Trump withdrew the threat of 10% tariffs on the EU, boosting demand for risk assets. On Wednesday, January 21, Trump announced details of the Greenland agreement, removing the risk of a full-scale trade war with the EU. Previously, XRP’s price plunged 12% to a low of $1.8489 amid threats of tariffs on eight NATO European countries.

Trump announced on Truth Social: “Based on my productive meeting with NATO Secretary General Stoltenberg, we have established a framework for the future of Greenland and the entire Arctic region. If this plan is ultimately agreed upon, it will greatly benefit the United States and all NATO countries. Therefore, I will not implement the tariffs scheduled for February 1.”

This sudden policy shift triggered immediate market reactions. The most notable data in today’s XRP news is that on Wednesday, January 21, XRP rose 3.13%, partially reversing the previous day’s 4.86% decline, closing at $1.9463. The token outperformed the overall crypto market, which gained 1.22%. This outperformance indicates XRP benefits from both improved fundamentals and a macro risk appetite rebound.

The Wednesday rebound solidifies the medium-term bullish outlook for XRP. Key positive factors include easing trade tensions, strong demand for XRP spot ETFs, increased utility of XRP, and progress on the market structure bill. Garlinghouse’s comments signal a shift in US-EU relations, potentially fostering trade relations, which is positive for risk assets like Ripple.

From a market psychology perspective, the seven-day decline has fully released selling pressure, with short-term holders being washed out, while steadfast long-term holders have accumulated at low prices. This improved token structure lays the foundation for subsequent rebounds. Trump’s tariff cancellation coincides with this timing, acting as a catalyst for the rally.

Brad Garlinghouse Calls for Legislation at Davos

Although the US and EU avoided a full-scale trade war, becoming a hot topic, Ripple CEO Garlinghouse shifts focus to cryptocurrencies and blockchain technology. At the World Economic Forum, he stated: “The atmosphere at today’s WEF meeting is lively, but an important consensus among experts is that innovation and regulation are not mutually exclusive. I firmly believe that now is the time to leverage cryptocurrencies and blockchain to build more efficient, scalable, and economically inclusive systems.”

The SEC lawsuit against Ripple is expected to conclude by 2025, allowing Ripple to make significant progress in mainstream markets and promote XRP adoption. Analysts believe crypto legislation will further legitimize XRP and accelerate integration between traditional finance (TradFi) and decentralized finance (DeFi). This integration has long-term significance beyond short-term price fluctuations.

Last week, after Coinbase withdrew support for the bill, the US Senate Banking Committee delayed voting on the market structure bill draft. However, Garlinghouse holds a different view on the draft. He rebutted the saying “No bill is better than a bad bill,” stating: “We can’t let perfection be the enemy of good. What we need is a clear framework for innovation to thrive—and that’s what the market structure bill can provide. Clarity over chaos.”

The Senate Agriculture Committee will release the draft text on January 23 (Friday) and vote on January 27. Progress on the market structure bill remains a key factor for XRP’s short- to medium-term bullish outlook. Garlinghouse’s public stance indicates Ripple is actively pushing legislation rather than passively waiting, which positively influences investor confidence.

Technical Analysis: $2 is a Key Breakthrough Level

(Source: Trading View)

Despite the rebound on Wednesday, XRP remains below its 50-day and 200-day moving averages, indicating a bearish bias. However, positive fundamentals continue to offset technical negatives, supporting an optimistic market outlook.

Key Technical Levels to Watch

Support Levels: $1.85, $1.75, $1.50

50-Day Moving Average Resistance: $2.0537

200-Day Moving Average Resistance: $2.3035

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

On the daily chart, breaking above $2.0 will activate the 50-day moving average. Sustained breakout above the 50-day MA could signal a short-term trend reversal. An upward trend reversal would open the door for bulls to target $2.2. Breaking $2.2 would pave the way to challenge the 200-day MA. Notably, if the price continues to break above EMA lines, it would reaffirm medium- to long-term bullish targets.

Improved risk sentiment enhances the short-term (1-4 weeks) bullish outlook, with a target of $2.5. Optimism over the Senate passing the market structure bill, increased XRP utility, and strong demand for XRP spot ETFs remain key bullish catalysts. These factors support long-term targets: $3.0 in 4-8 weeks and $3.66 in 8-12 weeks.

Avoiding a drop below $1.85 and breaking above $2.0 are critical for the medium-short-term outlook. XRP broke the December low of $1.7712 and gained 6.29% in January, further strengthening bullish structure and near-term price expectations. Surpassing $2.0 would allow bulls to aim for the upward trendline. Breaking the trendline would confirm a trend reversal and validate bullish structure.

Conversely, if the price continues to fall below the downward trendline and drops below $1.85, the bullish structure would invalidate, indicating a trend reversal to bearish.

Downside Risks Could Undermine Bullish Outlook

Several factors could threaten this optimistic outlook, and XRP investors should monitor closely:

Key Risks

Hawkish BoJ stance: Announcing maintenance of neutral rates at 1.5%-2.5%, hinting at possible multiple rate hikes, which could unwind yen carry trades

Fed rate cut expectations cooling: Gradually reducing bets on rate cuts in early 2026, suppressing risk assets

Legislation delays: Further postponement of the market structure bill, dampening market confidence

ETF outflows: XRP spot ETF reports capital outflows, indicating waning institutional demand

These conditions could pressure risk assets, causing XRP to fall below $1.85, signaling a trend reversal. The Bank of Japan’s monetary policy decision (January 23), US economic data, and XRP spot ETF capital flows will be key indicators in the coming days.

Easing geopolitical tensions, increased expectations of Fed rate cuts in early 2026, and the Bank of Japan’s dovish neutral rate stance (possibly between 1%-1.25%) will boost market sentiment. Strong demand for XRP spot ETFs, increased utility, and progress on the market structure bill will further reinforce this constructive trend.

Looking ahead 12 weeks, positive developments could push XRP to reach a new all-time high of $3.66 (Binance). Surpassing $3.66 could set a target of $5 within 6 to 12 months. However, achieving these targets depends on multiple conditions: sustained easing of trade tensions, smooth legislative progress, continuous ETF capital inflows, and successful technical breakthroughs of key resistance levels.