XRP (XRP) has been facing renewed selling pressure, struggling to maintain a foothold above the $3 psychological barrier as the broader cryptocurrency market undergoes a phase of consolidation. 

Despite promising developments, including the launch of a new Gemini XRP-linked credit card, traders remain cautious as short-term support levels are tested. Tommy Pearson, a broker with Maverix-Global, offers a comprehensive breakdown in this article.

XRP’s Recent Price Action

After an explosive 580% rally between November and January, fueled largely by Ripple’s legal victories against the U.S. Securities and Exchange Commission (SEC), XRP surged from $0.50 to a cycle high of $3.40. However, since late January, the token has entered a period of sideways consolidation, trading within a range of $2 to $3.60.

This price behavior highlights the tug-of-war between bulls and bears. While Ethereum (ETH) and BNB Coin (BNB) recently secured new all-time highs at $4,953 and $899, respectively, and Solana (SOL) broke above the $200 threshold, XRP has underperformed in comparison. 

The inability to sustain a breakout above the January high underscores lingering concerns about demand elasticity and profit-taking.

Technical analysis suggests that XRP’s recent rejection at $3.10, which coincided with the 200-period exponential moving average (EMA) on the 4-hour chart, marks a short-term pivot point. With heightened volatility across crypto markets, XRP could be on course to test key support at $2.75 before the next decisive move.

Gemini Launches New XRP Credit Card

Adding to XRP’s fundamental appeal, Gemini, a major cryptocurrency exchange with over $30 billion in assets under custody, has announced the Gemini Credit Card XRP Edition. This new payment product provides cashback rewards directly in XRP tokens, introducing a novel use case for the digital asset.

Reward structures include:

• 4% back on gas purchases
• 3% back on dining
• 2% back on groceries
• 1% back on all other purchases

All rewards are credited to the holder’s Gemini crypto account in XRP, strengthening the token’s role in real-world payments and enhancing its liquidity cycle.

By enabling seamless integration of consumer spending with crypto accumulation, this product could potentially expand XRP’s adoption curve beyond speculative trading. While not an immediate catalyst for sharp price appreciation, such initiatives underscore Ripple’s commitment to ecosystem expansion and help reinforce XRP’s utility narrative.

Market Liquidations and Short-Term Downside Risk

Over the weekend, crypto markets witnessed a sharp correction, wiping out over $700 million in leveraged long positions, with most liquidations tied to BTC and ETH. XRP was not immune, as its trading volume spiked by 100% within 24 hours, with more than $66 billion worth of tokens exchanging hands, equivalent to roughly 12% of XRP’s circulating supply.

Such elevated trading activity, coupled with an aggressive liquidation cluster, suggests that XRP could face an immediate retest of $2.75 support. If this level holds, it may establish a higher low, setting the stage for a potential bounce-back rally. 

Failure to hold this line, however, could push XRP back toward the lower end of its consolidation zone near $2. For traders, the $2.75 region serves as a critical technical inflection point, where buy-side demand will need to absorb the pressure of short-term sellers.

The Bigger Picture: Accumulation Phase

Despite short-term volatility, the broader outlook for XRP remains constructively bullish. Extended consolidation following a parabolic rally is often interpreted as an accumulation phase, during which stronger hands absorb supply before the next upward leg.

Several macro tailwinds could support XRP’s long-term trajectory:

• Potential approval of an XRP spot ETF, which would unlock institutional capital and enhance market depth.
• Regulatory clarity, with pro-crypto legislation such as the Genius Act and the Clarity Act, fosters confidence among institutional players.
• Retirement savings adoption, following the US President’s successful bid to incorporate cryptocurrencies into 401(k) accounts.
• Ripple’s ecosystem initiatives, including partnerships, tokenization efforts, and the latest Gemini-backed financial products.

If these factors align, XRP could eventually mirror the performance patterns of Ethereum and BNB, both of which have led the current altcoin cycle with impressive breakouts.

Conclusion

XRP’s struggle to hold above $3 highlights the crosscurrents of market sentiment, with short-term volatility pressuring prices even as fundamental drivers such as ecosystem growth and regulatory optimism provide support. The launch of the Gemini Credit Card XRP Edition is a meaningful step toward mainstream adoption, reinforcing XRP’s utility-based value proposition.

As the token navigates between $2.75 support and $3.40 resistance, the coming weeks will be crucial in determining whether XRP resumes its upward trajectory alongside other leading altcoins. For now, traders are watching closely as XRP balances on the edge of technical support, awaiting its next decisive breakout move.