Since the beginning of this week, the cryptocurrency market has been declining, with Ripple's XRP being one of the largest decliners among the top 10 currencies. Bitcoin has dropped 5% in the past seven days and is currently trading at about $113,000 per Bitcoin.
During this period, the values of Ether and XRP dropped by 10%, trading at $4,164 and $2.89 respectively.
Despite the increasing adoption rate by institutions, the recent bearish performance has led to losses exceeding $400 billion in the cryptocurrency market over the past seven days.
Ripple provides a $75 million credit line to Gemini.
XRP has dropped 3% in the past 24 hours, falling below $3 again. Despite the cryptocurrency exchange Gemini revealing that it has obtained a $75 million credit line from Ripple, XRP's performance remains weak.
In a filing submitted to the U.S. Securities and Exchange Commission (SEC) on August 15, the cryptocurrency exchange revealed that it reached a credit agreement with Ripple Labs in July, granting it a loan of up to $75 million, with the option to expand the loan amount to $150 million if certain criteria are met.
Previously, the cryptocurrency exchange reported a net loss of $282.5 million in the first half of the year, nearly seven times the net loss of $41.4 million in the same period last year.
The company's revenue fell from $74.3 million to $67.9 million.
The credit line provided by Ripple to Gemini could assist the cryptocurrency exchange in becoming a public company.
It could also facilitate the adoption of Ripple's stablecoin RLUSD, as the loan terms stipulate that once the borrowed amount exceeds the initial $75 million, requests can be priced in Ripple's dollar-backed RLUSD stablecoin.
As sellers remain in control, XRP could drop to $2.72.
Although XRP has dropped 10% in the past seven days, the XRP/USD 4-hour chart still appears bullish. However, technical indicators are weak, suggesting that the market remains under selling pressure.
The RSI is at 36, similar to BTC and ETH, indicating that sellers are controlling the market. The MACD line has also shown a bearish trend since August 13, suggesting that bullish momentum is weakening.
As of the time of writing, XRP is trading at $2.89. If the sell-off continues, XRP may retest the next support level of $2.72 in the coming hours. If it fails to hold this support level, XRP could drop to the reversal range of $2.34 in the coming days.
However, after experiencing a few days of bearish market conditions, the market may start to recover. If this happens, XRP could reach the first high of $3.1 within the next few hours.
The continued bullish momentum could help XRP recover the resistance level of $3.4 and potentially break through the recent high of $3.66. Nevertheless, the market outlook remains bearish, and traders are cautious ahead of Powell's speech on Friday.
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