XRP, the native token of Ripple, faces a downturn as the overall cryptocurrency market corrects. On an early Monday morning, it fell below $2.00 for the first time since January 2, hitting a low of $1.84 before partially recovering to $1.97. This represents a decline of over 23% from its peak of $2.41 recorded on January 6.

XRPUSD Chart XRPUSD Jan 19. Source: TradingView

The recent price drop is likely tied to escalating geopolitical tensions between the United States and the European Union. Over the past weekend, eight EU nations deployed troops to Greenland after U.S. President Trump emphasized the importance of acquiring the island. In response, the POTUS initiated a new batch of tariffs against the sending nations, prompting an emergency meeting within the EU, where French President Emmanuel Macron urged for the use of an unprecedented “trade bazooka.”

Meanwhile, after a stable weekend, the crypto markets took a hit on Monday morning. Bitcoin dropped from over $95,000 to below $92,000, with a slight recovery thereafter. Most altcoins faced even larger declines, including XRP, which hovered near critical support levels.

Crypto analyst CryptoWZRD cautioned that XRP closed in a bearish position against Bitcoin, indicating the need to maintain a price above $1.975 to build upward momentum. The current market sentiment is tense, and the situation remains fluid as traders monitor developments closely.