XRP Drops 11% Below $2.00 Mark, Bearish Trend Looms

XRP, the cryptocurrency associated with Ripple, has experienced a significant decline, falling below the $2.00 mark. This drop has raised concerns among investors and analysts about the potential for a larger breakdown in the cryptocurrency's value. The price of XRP has been trading below $1.850 and the 100-hourly Simple Moving Average, indicating a bearish trend.

The decline in XRP's price began when it failed to maintain its position above the $2.050 level, leading to a fresh descent. This drop was accompanied by a break below a connecting bullish trend line with support at $2.120 on the hourly chart of the XRP/USD pair. The price even fell below the $1.820 level, reaching a low of $1.797 before beginning to consolidate its losses.

Currently, the price of XRP is facing resistance at the $1.850 level, with the first major resistance near the $1.880 level. This resistance is close to the 23.6% Fib retracement level of the downward move from the $2.168 swing high to the $1.797 low. If the price can clear the $1.950 resistance, it may move towards the $2.00 resistance or the 61.8% Fib retracement level of the downward move from the $2.168 swing high to the $1.797 low.

However, if XRP fails to clear the $1.880 resistance zone, it could start another decline. Initial support on the downside is near the $1.80 level, with the next major support near the $1.7650 level. If there is a downside break and a close below the $1.7650 level, the price might continue to decline towards the $1.720 support. The next major support sits near the $1.650 zone.

Technical indicators also suggest a bearish trend for XRP. The MACD for XRP/USD is now gaining pace in the bearish zone, while the RSI for XRP/USD is now below the 50 level. These indicators, along with the price action, suggest that XRP may continue to face downward pressure in the near term.

Investors and traders are closely monitoring the situation, as a breakdown below the $1.80 level could signal a larger decline for XRP. The cryptocurrency market is known for its volatility, and sudden price movements are not uncommon. However, the recent decline in XRP's price has raised concerns about the potential for a larger breakdown, and investors are advised to exercise caution.