XRP slips below $2.0, eyes the $1.7 support level; Check forecast

The cryptocurrency market is recording one of its worst months this year. The market has wiped out over $120 billion in the last 24 hours, with Bitcoin, Ether, XRP, and other major cryptocurrencies currently in the red.

The bearish performance has resulted in XRP losing the $2.0 psychological level, and it could dip further over the next few hours and days.

XRP loses the $2.0 psychological level

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) continued their downward trajectory on Friday, as the major cryptocurrencies have lost more than 8%, 9% and 10% respectively so far this week.

The recent selloff saw Bitcoin’s price slip below $86k for the first time since May, while Ether temporarily dropped below $2,800.

XRP, the native coin of the Ripple ecosystem, also lost the $2.0 psychological level, highlighting a deepening correction as bearish momentum gains control across the top three cryptocurrencies. 

The leading cryptocurrencies could now be heading towards key support levels as traders eye a short-term rebound. If the key support levels fail to hold, XRP and other major cryptocurrencies will continue to experience a massive sell-off in the near term. 

XRP’s decline below $2.0 comes after the coin failed to overcome the $2.16 resistance level on Thursday.

The coin is now down by 7%, with its total market cap dropping below $120 billion for the first time in six months. 

Despite the bearish performance, XRP’s daily volume surged by 28.44% to hit $6,108,109,170.23.

Volume increase during a price decline usually indicates profit-taking or repositioning by crypto traders ahead of the next move in XRP price.

The Fear and Greed Index currently stands at 11, indicating extreme fear among market participants.

The fear stems from recent data that shows the cryptocurrency market lost $120 billion over the last 24 hours. With the recent wipeout, the total cryptocurrency market cap has now dropped below $3 trillion. 

XRP’s momentum indicators remain bearish

The XRP/USD daily chart remains bullish and efficient despite Ripple losing 13% of its value in the last seven days.

The bullish structure would be broken once XRP dips below the $1.62 low, which would see a Break of Structure (BoS) on the daily timeframe.

XRP’s price faced rejection from the 50-day EMA at $2.47 last week and has lost over 15% of its value since then.

Its bearish performance continued into this new week, with the coin losing 7% of its value since Thursday. At press time, XRP is trading at $1.96 per coin.

The daily RSI is 32, indicating strong bearish momentum and nearing oversold conditions. The MACD lines also remain within the bearish territory. 

If the selloff continues, XRP could extend its decline towards the October 6 low of $1.78 over the next few hours.

The TLQ and support level at $1.62 could serve as a region for XRP to bounce if the $1.78 support fails.

However, if XRP recovers from the current dip, it could rally towards the first major daily resistance at $2.2 over the next few hours.