XRP Drops 3.2% Amid Institutional Liquidation Despite New Credit Card Launch

XRP experienced significant volatility from August 25 to 26, dropping from $3.01 to $2.91, marking a 3.2% loss. A spike in institutional liquidations led to the sharp decline, with trading volumes tripling daily averages. Late-session attempts to recover pushed XRP back above $2.90, but market sentiment remains uncertain regarding sustained upward momentum.

News Background

XRP has shown high volatility in August, repeatedly failing to maintain levels above $3.00.
Whale wallets and institutional movements have influenced short-term price fluctuations, affecting retail traders.
Other cryptocurrencies have gained steadier while XRP lags due to regulatory concerns in the U.S.
Gemini partnered with Ripple to introduce an XRP credit card offering cashback on various purchases.
The card provides up to 4% cashback in XRP for specific categories and 10% back with select merchants.

Price Action Summary

XRP fell 3.24% within 24 hours, fluctuating between $3.01 and $2.91, showing 9% volatility.
Peak selling occurred from 19:00–20:00 GMT, with a drop from $2.96 to $2.84 on 217.58 million volume, significantly exceeding the daily average of 72.45 million.
A recovery of 0.69% occurred in the final hour, rising from $2.89 to $2.91 with an average of 641,000 institutional flows per minute.

Technical Analysis

Resistance is at $2.96, aligning with the upper Bollinger Band rejection.
Support established between $2.84 and $2.86, consistent with the 20-day moving average.
$2.89 serves as an intraday floor, indicating accumulation, with RSI recovering from oversold conditions.
MACD histogram narrowing suggests a possible bullish crossover in the near term.
Sustained trading above $2.90 is necessary to target $3.20–$3.30; a break below $2.84 may lead to further declines towards $2.80.

What Traders Are Watching

Bulls aim for $3.70 should momentum continue and volumes stabilize.
Bears identify $2.80 as a critical breakdown level that could prompt increased losses.
Institutional support around $2.89–$2.90 is crucial for determining the next price movement.