- XRP dropped over 3% to $2.91 despite Ripple and Gemini launching a credit card offering cashback in XRP.
- Market sentiment remains cautious, with key support at $2.84–$2.86 and traders watching institutional activity closely.
XRP faced a sharp decline over the past 24 hours, dropping over 3% to $2.91. This came just as Ripple and crypto exchange Gemini announced a new credit card offering cashback in XRP, highlighting the contrast between market sentiment and adoption efforts.
XRP Faces Sharp Drop as Institutions Sell
Between Sunday night and Monday, XRP’s price fell from $3.01 to $2.91, with the steepest decline occurring around 9:00 PM Dutch time. During this single hour, institutions sold heavily, tripling trading volume and pushing the price down by twelve cents. Although XRP recovered slightly to just above $2.90, overall sentiment remains fragile, and traders are cautious about further gains.
Technical Analysis Points to Key Support
XRP has repeatedly struggled to break the $2.96 level, coinciding with the upper Bollinger Bands where profit-taking often occurs. On the downside, support lies between $2.84 and $2.86, aligning with the 20-day moving average—an important defensive level.
Technical indicators suggest a tentative recovery. The Relative Strength Index (RSI) is climbing towards neutral territory, while the MACD is beginning to signal potential bullish movement. Traders see $2.90 as a critical level: staying above it could stabilize XRP, but a drop below may trigger a fall towards $2.80.
Gemini Credit Card to Boost XRP Usage
Despite price volatility, Ripple and Gemini launched a credit card rewarding users with up to four percent cashback in XRP. The card, developed with WebBank, applies cashback to everyday expenses including gas, electric vehicle charging, and ridesharing services like Uber.
Additional rewards cover dining, groceries, and other purchases with three, two, and one percent cashback respectively. Certain store partnerships may even offer up to ten percent cashback in XRP. Ripple’s goal is to encourage real-world use of XRP, even as regulatory uncertainties persist in the U.S.
Traders Eye Key XRP Levels
Market opinions remain divided. Some traders are optimistic about a recovery toward $3.70, contingent on higher trading volumes and institutional support around $2.90. Others remain cautious, warning that a drop below $2.80 could trigger further declines.
Ultimately, XRP’s near-term direction will hinge on institutional activity. Their buying or selling behavior will likely determine whether the cryptocurrency can regain ground or continue its downward trajectory.
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