XRP Price at Risk: Analyst Cautions of Bull Trap, Trend Reversal

The XRP price is currently at a critical juncture, with analysts warning of a potential bull trap that could lead to a trend reversal. As the token hovers just under $3, investors and market experts are closely watching key levels that could determine its next move. While the Ripple token is currently in the green zone, the question is- will the rally continue, or will it slip to a market crash?

XRP Price in Green, But Caution Advised

In a recent X post, analyst Egrag Crypto underscored his cautious approach to Ripple’s native token. Although the XRP price is currently exhibiting bullish signals, he warned that it could lead to a “bull trap” if key levels fail to sustain.

According to Egrag Crypto, the altcoin should close above $3.07, $3.13, and $3.30, each sustained for at least 3 days. This price trajectory will be crucial for validating the token’s potential bullish case. Failure to hold these levels could signal a bull trap, leading to a market crash.

In a subsequent post, Egrag shared a more optimistic forecast for the Ripple coin. As per his projection, the XRP price could hit $4.40 if it closes above $3.13. On the other hand, it could dip to a low of $2.65 or even $2.40.

The altcoin maintained solid support in the $2.70-$2.80 zone, with buyers stepping in to prevent lower prices in the meantime. With the token gaining traction, it is currently experiencing selling pressure near $2.93-$2.94. In the event of a continued price trend, XRP's next targets would be $3.00, $3.10-$3.15, and $3.30-$3.35, which have clearly been higher levels of seller defense historically. The resistance will also certainly determine the short-term price trend for XRP.

Nearing Pivotal $3 Mark

Currently, the Ripple coin is trading at $2.97, very close to the pivotal $3 level. The second-largest altcoin has secured notable upticks of 4.3%, 4.2%, and 6.5% over the past day, week, and month, respectively. This positive momentum is also reflected in the trading activity as the community is showing increasing interest in the crypto. In a day, the trading volume has hit $6.69 billion, marking a massive hike of 31%.

Another prominent analyst, CoinsKid, shared descending triangle analysis for the cryptocurrency. He noted that the crypto is currently experiencing a period of compression, which often precedes a significant price expansion. The token is forming a descending triangle pattern, and a breakout above the upper resistance line could trigger an impulsive move upwards, targeting $4.13.

Ali Martines also expressed his bullish thoughts, predicting Ripple’s possible rally to $3 and $3.15. He based his analysis on the altcoin’s capability to break past the key resistance at $2.94. As it has now soared past the level, a $3 surge is imminent.