Trump's tariff escalation impacts market sentiment, is XRP price under pressure or poised for a rebound?

January 29 News, as Trump continues to strengthen his tariff stance, global risk aversion sentiment has significantly increased, and digital assets are once again facing selling pressure. As one of the core tokens in cross-border payments, XRP has recently shown weak performance and struggles to shed its risk asset attributes. Since the peak in mid-January, the overall crypto market has retreated by nearly 8%, with XRP falling approximately 12% in tandem, breaking below the $2 mark, and returning to the early-year range.

Tariffs are not just a trade tool but also an emotional amplifier. The experience from April last year shows that related statements often disturb capital allocation even before policy implementation. The current tension began on January 17, when Trump threatened to impose tariffs on the EU, followed by warnings to Canada, sparking concerns over expanding global trade frictions. Funds have flowed into traditional safe-haven assets like gold and silver, further draining liquidity from the digital market.

However, XRP’s on-chain and institutional data still show resilience. The stablecoin market cap on the network grew from $85 million at the start of the tariff turmoil to $406 million, with Ripple’s RLUSD dominating. CoinGlass data indicates that XRP has recently experienced continuous outflows from trading platforms, suggesting long-term holders are not panicking. Meanwhile, SoSoValue statistics show that the US spot XRP ETF has maintained monthly net inflows since launch, with a total scale reaching $1.26 billion.

From a technical perspective, XRP remains within a downtrend channel, forming a descending wedge pattern. If it effectively breaks through the resistance zone later, the target could be above $2, with a potential rebound level around $2.23. However, momentum indicators still appear weak, and short-term fluctuations may continue.

Against the backdrop of increasing macro uncertainty, XRP’s short-term volatility is more driven by sentiment rather than deteriorating fundamentals. If the tariff conflicts ease and market risk appetite recovers, its price could regain upward momentum.