Since the beginning of the week, the cryptocurrency market has been declining, with Ripple XRP being one of the largest losers among the top 10 currencies. Bitcoin has dropped 5% in the past seven days, currently trading at approximately $113,000 per Bitcoin.
During this period, the value of Ethereum and XRP has decreased by 10%, trading at $4,164 and $2.89, respectively.
Despite the increasing institutional adoption, the recent bearish performance has resulted in the cryptocurrency market losing over $400 billion in the past seven days.
Ripple provided a $75 million credit line to Gemini.
XRP has fallen 3% in the past 24 hours, dropping 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 a loan of up to $75 million, with the option to expand the loan amount to $150 million upon meeting certain criteria.
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 during 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 may help the cryptocurrency exchange become a publicly listed company.
It could also promote the adoption of Ripple's stablecoin RLUSD, as the loan conditions stipulate that once the borrowing amount exceeds the initial $75 million, requests can be priced in Ripple's USD-backed RLUSD stablecoin.
As sellers remain in control, XRP could drop to $2.72.
Despite XRP's 10% decline over the past seven days, the XRP/USD 4-hour chart remains bullish. However, technical indicators are weak, indicating that the market is still under selling pressure.
The RSI is at 36, similar to BTC and ETH, indicating that sellers control the market. The MACD line has also shown a bearish trend since August 13, indicating that bullish momentum is weakening.
As of the time of writing, XRP is trading at $2.89. If the selling continues, XRP may retest the next support level of $2.72 in the coming hours. If it fails to hold that support level, XRP could drop to the reversal range of $2.34 in the coming days.
However, the market may start to recover after a few days of bearish trends. If this occurs, XRP could reach the first high of $3.1 within the next few hours.
Ongoing bullish momentum could allow XRP to reclaim 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.
