XRP derivatives traders faced heavy losses on January 19 after a sharp crypto market pullback tied to renewed U.S.-EU trade tensions linked to President Donald Trump’s tariff threats over Greenland.
The selloff triggered more than $5 million in forced XRP long liquidations, with Binance accounting for over $1 million, as leveraged bets unraveled alongside a broader risk-off move across digital assets.
XRP Liquidations Follow Trump Tariff Headlines
According to data shared by market analyst Amr Taha on January 18, XRP saw one of its largest single-day long liquidation events this month. Total long liquidations topped $5 million, reflecting traders caught on the wrong side of a fast-moving drop after weekend macro headlines shook sentiment.
The pressure followed a Financial Times report published stating that European capitals were considering tariffs of up to €93 billion, or about $108 billion, on U.S. goods. The move was described as a potential response to Trump’s threats toward NATO allies over Greenland, and landed just days after the U.S. president confirmed new tariffs on several European countries, including Denmark, Germany, and France, starting February 1.
Crypto markets reacted quickly. Bitcoin dropped from above $95,000 to below $93,000 within hours, with the Kobeissi Letter reporting that nearly $500 million in leveraged long positions were wiped out in roughly 60 minutes, while trader CW said total liquidations across the market reached about $871 million over 24 hours.
XRP followed the broader market lower, amplifying losses for leveraged traders as volatility spiked across major exchanges.
XRP Price Action
At the time of writing, XRP was trading around $2.00, down about 5% in the last 24 hours.
The Ripple token has lost roughly 5% over the past week and close to 8% in the past 14 days. Meanwhile, across the past month, it remains modestly higher, up just over 2%, while its one-year gain stands near 39%.
The latest drop pushed XRP toward the lower end of its weekly range, between $1.95 and $2.18, with sellers again defending the $2.10 to $2.15 area.
The move comes despite recent strength in spot XRP exchange-traded funds, which posted net inflows of about $57 million last week, reversing brief outflows seen earlier this month.
Still, ETF demand has not translated into sustained price strength, leaving XRP vulnerable during macro-driven risk-off moves.
Technical analysts had already flagged weakening momentum before the liquidation event. An analysis from last Friday by ChartNerd noted XRP trading inside a descending channel, with buyers showing interest near $2.00 but failing to reclaim higher resistance.
The January 18 selloff reinforced that caution, as macro headlines once again outweighed crypto-specific positives.