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

Source: CryptoNewsNet Original Title: The Price Level XRP Must Regain to Return to a “Safe Zone” Original Link: 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 recent 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 tariff announcements on European countries, 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 threats of additional tariffs, 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 market analysts. Notably, analysts were among 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, analysts warned investors to be cautious, arguing that the upsurge did not come from “aggressive market buying.” They 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. Tariff threats have also exacerbated the situation.

XRP Must Reclaim $2.05 to Return to a Safe Zone

In recent market commentary, analysts 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 analysts, the rally did not witness any buyer support.

Analysts stressed that XRP would need to recover toward reclaiming the $2.05 level for it to return to a “safe zone.” They 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.” They believe the market could see steeper declines if XRP loses $1.8, with a run to $2.05 necessary to become safe.