XRP Slides Below $2; Fed’s $55B Liquidity Could Spur Rebound

XRP falls below $2 as Fed unveils $55B liquidity injection—analysts eye $5.18 upside amid bear-market and geopolitical headwinds.

  • XRP has dropped below $2 and shows declines across multiple time frames per CoinGecko data.
  • The Federal Reserve plans a $55 billion liquidity injection, with an initial $8.3 billion disbursed on Jan. 20, 2026.
  • Bitcoin has historically rallied after Fed interventions; the article notes XRP could follow if broader crypto gains momentum.
  • Telegaon analysts project a possible peak of $5.18 for XRP, an upside of about 172.6% from current levels, according to Telegaon analysts.
  • Ongoing bear-market conditions and geopolitical risks, including tariffs by President Trump, remain headwinds for crypto prices.

Ripple‘s token XRP fell below $2 again on recent trading, showing losses of 1.9% over 24 hours, 11.3% over seven days, 15.8% over 14 days, and 0.8% over the last month, according to CoinGecko data. The decline comes amid broader market weakness and macroeconomic uncertainty.

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The Federal Reserve announced a $55 billion liquidity injection to be deployed over coming weeks and delivered an initial $8.3 billion on Jan. 20, 2026. The article notes that past Fed interventions have coincided with rallies in Bitcoin, and it suggests XRP could benefit if crypto markets respond similarly.

Late last year saw the launch of several spot ETFs that could increase flows into crypto assets. The piece cites that CNBC labeled XRP the “hottest crypto deal of 2026.” It also references Telegaon analysts, who forecast a potential maximum price of $5.18 for XRP, representing roughly a 172.6% rise from current levels.

The article emphasizes that the market remains in a bear phase and faces headwinds from geopolitical tensions and macroeconomic factors. It specifically notes that additional tariffs announced by President Trump on countries supporting Greenland could prompt further market corrections.

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