- Coinbase lets people borrow up to $100,000 in USDC using XRP and other coins as collateral.
- Despite the utility boost, XRP slips below $1.40 with the downward momentum.
- The entire crypto market turned cautious, where both Bitcoin and Ethereum stalled.
It was expected that XRP would experience a big boost due to Coinbase now letting people borrow up to $100,000 in USDC using XRP, Dogecoin, Cardano, and Litecoin as collateral. This is done through a lending tool built with Morpho on the Base blockchain.
Eligible US users (New York excluded) can now borrow up to $100,000 in USDC without selling their crypto in an effort to provide liquidity access to token holders during periods of market stagnation. However, XRP still got caught up in the broader market slump and fell below the key $1.40 level on February 20.
There’s no specific reason for the drop, except for the fact that the entire crypto market turned cautious, where Bitcoin and Ethereum both stalled or softened as economic news and tighter liquidity weighed on sentiment.
In that scenario, XRP couldn’t hold above $1.45, slipped under $1.42, and then broke through the key $1.40 level, a sign that short-term momentum is still pointing down.
According to CoinMarketCap, XRP’s price is hovering around $1.40. As it stands at the moment, XRP could drop further if it breaks below other key levels, such as $1.30.
Related: XRP ETF Deadline: SEC to Decide on T. Rowe Price by February 26
General Crypto Downturn
It seems that XRP’s drop is part of a bigger crypto slump. Analysts say big investors are staying on the sidelines, and there is no fresh news to spark a rally. So, even things like ETF inflows or new blockchain deals aren’t enough to lift prices. Global economic developments and geopolitical worries are also pushing people toward safer assets.
Even Bitcoin, whose price often influences other tokens, has been struggling lately. Per the Fear & Greed index from Binance, Bitcoin entered the extreme fear territory, with the index currently showing 12.
In the last 30 days, the cryptocurrency’s price dropped by approximately 25%, which represents a notable decline. XRP had a similar performance, with its drop being closer to 27%.
Related: Coinbase Expands Crypto Loans, Adds XRP, DOGE, ADA, LTC as Collateral
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Source: https://coinedition.com/xrp-slips-below-1-40-support-despite-coinbase-utility-boost/
