XRP Price Analysis: Breakdown or Bear Trap? Trade Set up for Urgent Profit Targets

XRP is currently trading at $1.8926, down 2.18% on the daily timeframe, having broken a long-held horizontal support at $2.0390. This breakdown below structure support has triggered caution among bulls. The coming sessions are critical for determining whether this is a clean breakdown or a fake out reversal.

Chart Patterns

• Descending Triangle Breakdown (Daily & 4H):

XRP formed a descending triangle, repeatedly testing the $2.04–$2.05 horizontal support. The breakdown below this structure signals bearish continuation, targeting $1.70 and possibly $1.50 if no recovery occurs.

• Bear Flag (1H):

A small bear flag structure on the 1H chart shows XRP consolidating sideways after a steep drop. If the flag breaks downward, we could see a retest of $1.82 and $1.70.

• Long Wick Rejection (15M):

On the 15-minute timeframe, XRP printed a candle with a long upper wick near $1.89, rejecting the lower Bollinger band. This reflects intraday selling pressure as bulls struggle to reclaim lost ground.

Indicators

• Bollinger Bands:

On the daily chart, XRP has decisively closed below the lower Bollinger band, suggesting aggressive bearish momentum. The middle band at $2.1983 now acts as dynamic resistance.

• MACD:

The MACD on the daily timeframe shows a fresh bearish crossover below the signal line, with increasing red histogram bars—indicative of growing downside momentum. Lower timeframes show weak bullish attempts but lack follow-through.

• RSI:

The RSI is dropping below 40 on the daily, showing bearish momentum without being oversold yet. On the 1H and 15M, RSI is near 30, suggesting short-term bounce potential but within a broader bearish context.

• Volume:

Volume on the breakdown was notably high, confirming bearish conviction. However, declining volume on recent candles hints at indecision or exhaustion—watch for spikes to validate the next move.

Key Levels

• Resistance: $2.04, $2.19, $2.57
• Support: $1.82, $1.70, $1.50

Trade Setup

• Entry (Short): $1.88–$1.90
• Stop Loss: $2.05 (above breakdown level)
• Target 1: $1.70
• Target 2: $1.50

Alternatively, wait for a bullish reclaim above $2.05 with volume for long setups.

Fundamental Context

XRP continues to face pressure from macroeconomic uncertainty and lingering regulatory concerns, especially around SEC litigation outcomes. While Ripple has expanded its use cases globally, market sentiment remains tied to legal clarity. Until a favorable ruling or news catalyst emerges, XRP is likely to remain technically driven.

Outlook

Bears currently hold control. A failure to reclaim $2.04 will likely push XRP toward $1.70–$1.50. However, a strong reclaim with volume could trap shorts and ignite a sharp recovery rally. Traders should watch volume and RSI closely over the next sessions.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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