XRP traders who initially reacted with panic when the price fell below $2.70 are now viewing this movement as a classic bear trap. The swift dip, which pulled the price down toward the lower Bollinger Band, effectively eliminated weaker long positions and triggered short positions, only to reverse rapidly back into the previous trading zone. This swift movement has left bears at a disadvantage while allowing bulls to re-establish their control.
On the weekly chart, XRP has managed to maintain its position above the 20-week moving average, indicating a positive trend in the broader context. Historically, when XRP maintains its position around these mid-levels following a price surge, it often builds momentum for another upward move. The critical price point to monitor remains $2.70.
If buyers can consistently uphold this level, it could reopen the path to the upper band, approximately $3.55. This is particularly significant as this level previously halted a rally in July. A decisive breakout above $3.55 would signify that the bear trap functioned as a final shakeout, leading into a renewed rally.
From a daily perspective, XRP’s price movement has appeared stagnant for weeks, testing the resolve of traders with sideways action that eventually led to a sharp drop followed by a resilient rebound. Larger investors, sometimes referred to as “big hands,” capitalized on this liquidity, pulling the price back above $2.80. This behavior indicates an accumulation phase—often tedious and frustrating for traders—but one that typically lays the groundwork for an impending price increase.
Looking forward, the outlook for XRP transcends the concerns of individual traders focused on short-term price movements. The overall appetite for altcoin investment is expected to influence future price dynamics significantly. With the bear trap seemingly resolved, the advantage seems to be shifting back toward bullish sentiment, leaving shorts with only a fleeting advantage as momentum appears to favor a rise in the price of XRP.
