Key takeaways
XRP is down 1% in the last 24 hours and is trading at $1.99.
Failure to defend the $1.96 support could see XRP dip lower.
XRP drops below $2
The cryptocurrency market has underperformed over the past few days, with Bitcoin and other major coins currently in the red. Bitcoin, the leading cryptocurrency by market cap, has dropped below $90k and could retest lower levels if the bearish trend continues.
XRP, the native coin of the Ripple blockchain, is also in the red zone, after losing 1% of its value in the last 24 hours. The bearish performance means that XRP was unable to defend the $2.0 psychological level, as it is now trading at $1.99.
The bulls will now be forced to defend the $1.96 suppport level as failure to do so could see XRP record massive losses over the next few days. Currently, the market is still consolidating, with no clear direction in sight.
XRP could extend its decline if bulls fail to defend the $1.96 support
The XRP/USD 4-hour chart is bearish and inefficient, with the inefficiency caused by the October 11 deleveraging event. Since then, XRP has failed to rally to the $2.7 level to gain efficiency.
The cryptocurrency lost 3.22% of its value last week, making it the second consecutive week of losses. At press time, XRP hovers around $1.99.
If XRP fails to recover and closes the daily candle below the $1.96 support, it could extend the decline toward the next daily support at $1.77.
The RSI on the 4-hour chart is 41, below its neutral level of 50, indicating that bearish momentum is gaining traction. The MACD lines are also converging, adding more confluence to the consolidating market condition.
On the flip side, if XRP stays above the $1.96 daily support, it could extend the rally toward the next daily resistance at $2.35.
