On January 30, 2026, the price of XRP experienced a sharp decline, dropping to around $1.75 and reflecting heightened investor anxiety over a cloudy economic outlook. The sell-off was fueled by broader market jitters stemming from postponed U.S. inflation reports and the looming risk of another partial government shutdown.
Macroeconomic pressures intensified after XRP failed to hold the $1.86–$1.87 support area on January 29, leading to increased selling pressure that pushed the price down to $1.73 the following day. At the time of writing, Ripple's XRP was down approximately 5.4% over a 24-hour period. This drop occurred in the wake of the Federal Reserve's decision to hold interest rates steady, maintaining the federal funds rate between 3.5% and 3.75%. While anticipated, uncertainty regarding the Fed's future policy moves continues to weigh on sentiment.
Compounding the uncertainty is the distortion of U.S. economic data caused by earlier government shutdowns. Key reports, including the Fed's preferred inflation gauge—the Personal Consumption Expenditures (PCE) Index—remain delayed and will stay a month behind schedule until April. This data gap hampers policymakers' ability to confidently adjust rates. The Bureau of Economic Analysis recently released a combined PCE report for October and November, showing core inflation rose 2.8% year-over-year and 0.2% month-over-month, largely meeting expectations.
However, fears have resurfaced as the current government funding resolution was set to expire on January 30, raising the risk of another shutdown. Federal Reserve Chair Jerome Powell noted that the U.S. is only just moving past data distortions caused by the previous six-week shutdown. Another funding lapse could disrupt inflation data collection again, potentially affecting the quality of February's Consumer Price Index (CPI) report.
Technically, the near-term outlook for XRP appears bearish. A daily close below the $1.80 level could open the door for a drop toward $1.60, with a further decline to $1.50 possible if selling pressure persists. Conversely, a recovery would require a daily close above $1.83 to show any short-term signs of strength. Without positive macroeconomic developments, significant upside appears limited.
As January closed, XRP remained under pressure, trading at $1.71 after another 1.6% daily decline. The token is down nearly 10% over the past week and approximately 6.3% over the past month, with its market capitalization standing slightly above $105 billion. Historical seasonal data adds context, as XRP has traditionally struggled in early-year months. February has recorded a median return of -8.12% and an average decline of about 5%; in February 2025, XRP fell nearly 29%.
Despite the bearish signals, on-chain data indicates some large holders, or "whales," are accumulating XRP. However, rising exchange inflows simultaneously signal potential downside risk as more tokens move to trading platforms, possibly for sale. The immediate price outlook hinges on the $1.69 support level and the $1.97 resistance heading into February.
