The cryptocurrency market has started the new week bearish, with Bitcoin briefly dropping below $115K.

XRP, the native coin of the Ripple ecosystem, also tested a key support level after dropping below $3.0.

The cryptocurrency market was bullish last week, with Bitcoin and other major cryptocurrencies recording gains.

Bitcoin rallied to the $116k region last week but failed to surge past the resistance level.

The strong resistance saw Bitcoin drop to the $114k region earlier today, with altcoins also underperforming.

XRP, the third-largest cryptocurrency by market cap, added over 5% to its value last week, hitting a weekly high of $3.18 on Saturday. 

However, the market has been bearish since then, with XRP now down 3.6% over the last 24 hours.

The bearish performance saw XRP retest the $2.95 support level earlier today before bouncing back to now trade above $2.97 per coin.

The bearish performance comes ahead of a key Fed rate decision later this week.

Traders still expect the Federal Reserve to cut interest rates later this week, a move that could see prices of Bitcoin, Ether, and XRP rally higher. 

The XRP/USD 4-hour chart is bearish, as XRP has underperformed over the last 24 hours.

The bearish performance could be a retracement before XRP surges higher over the next few days.

XRP’s price broke above the falling wedge pattern on Thursday, signifying a potential breakout for the bulls.

The pattern was followed by a 2.5% rally over the next two days before the bearish performance on Sunday and Monday. 

Retesting the $2.95 support is crucial for XRP, as it could determine its price action over the next few days.

The MACD lines are still within the bullish territory, signalling that buyers are still in control.

The RSI stands at 55, which is above the neutral value of 50, indicating a bullish bias. 

If the $2.95 support holds, XRP could look to resume its rally over the next few hours and days.

The 4-hour TLQ and resistance level at $3.18 would be the immediate target, with the $3.40 resistance level a target over the next few days. 

However, failure to hold the $2.95 support level could see XRP face further selling pressure in the near term.

The next major support level at $2.78 could serve as the next magnet for the bears. 

The upcoming Fed rate decision could serve as a bullish event for XRP and the broader crypto market.

If the Fed cuts the interest rate, then BTC, ETH, and XRP could rally substantially over the next few days.

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