- XRP closes January at its highest monthly close in history, despite a 7.24% weekly dip and a 14% correction from its all-time high of $3.38
- The altcoin remains bullish, up 21.35% over the last 30 days, signaling strong market confidence in its long-term potential
- Broader market factors, including Wall Street volatility, Fed interest rate decisions, and Trump’s tariffs, contributed to XRP’s recent losses
Despite a recent intra-week dip, XRP closed off in January at its highest monthly close in history. On February 1st, the altcoin trades at $2.90 per token, down by over 3% over the last 24 hours. Over the week, XRP also saw losses at a 7.24% decrease in value.
The currency went through a correction period after reaching its all-time highest value on January 16th, at $3.38. Since then, XRP lost over 14% of its value as buyers fight to maintain the $3.00 level.
However, these losses weren’t sufficient to erase the incredible performance XRP had in early January. In fact, the currency is still bullish on a larger timeframe, up by 21.35% over the last 30 days.
When looking at the 1-month candle bar chart, XRP was able to close the month at its highest point ever.
That means that—despite the dip—there is still confidence in the market regarding XRP’s long-term potential.
Why XRP Lost The $3.00 Margin
January’s last week wasn’t as kind to the cryptocurrency market when compared to the month’s first half. Overall, nearly all cryptocurrencies suffered losses over the week, due to a handful of reasons.
For starters, the Wall Street meltdown since the artificial intelligence firm “DeepSeek” launched its new AI model that was vastly cheaper than the competition led to investors momentarily turning away from risky markets.
Later, the Federal Reserve updated the American public regarding its interest rate levels. Despite coming from three consecutive rate cuts, Fed Chair Jerome Powell announced during the latest FOMC meeting that they will maintain the current 4.25-4.50% margin until the next month.
And finally, Donald Trump’s decision to impose 25% tariffs on neighbor-nations Mexico and Canada has also shaken up the market.
In fact, the decision to halt rate cuts and the new tariffs by Donald Trump are more intertwined than it seems. Donald Trump ran his 2024 campaign promising to tax pretty much every nation outside the U.S. — and that could explain why the Fed decided to halt interest rate cuts.
With higher tariffs on imports, the cost of these products is likely to increase. When taking this into consideration, these higher costs could lead to an overall increase in prices—potentially increasing inflation levels.
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