After a tremendous rally to nearly reach the long-term goal of $3, Rippleโs native XRP token fell into the hands of crypto bears. Namely, this happened due to one of the most common psychological pitfalls in crypto trading – a bull trap.
XRP Price Rubs Out Strategy Reserve Rally
In the case of Rippleโs (XRP) price, the U.S. government’s move to include the altcoin in the Federal Strategic Reserve paid off with a stupendous rally to $2.94 on Monday morning. However, a swift backtrack followed on Tuesday, as the shocking news leaked about Donald Trump pulling aid from Ukraine in their defense efforts against Russia in the invasion.
At present time, Ripple (XRP) price is facing a turning point, which could lead to three contrasting outcomes, according to crypto analyst Man Of Bitcoin. Basing on the Fibonacci retracement tool and the Elliott Wave theory. He insisted that XRPโs price could either cling on a bullish ABC structure in Wave 3, or succumb to an alternative Wave 4 and fall as hard as $1.
Sponsored
Ultimately, the trader sees $1.794 as the XRP price level confirming this theory, meaning that a downward breakout below this range, which served as the lower boundary in the support ground for the past three months. Unprecedented since November 30, 2024, this level is yet to be examined by crypto bears, leading the charge in a selection of crucial metrics.
Evidently, crypto bears, otherwise known as short-sellers, have overthrown XRP bulls in strength. According to live data from TradingView, the negative Bull Bear Power (BBP) score suggests that bears have recently taken over. Alternatively, the Stochastic Momentum Index (Stoch) flashed an overbought position, as both blue & yellow trend lines were below zero.
On The Flipside
- Aside from tech implications, XRP price movement highly depends on regulatory factors, including the U.S. Securities and Exchange Commissionโs (SEC) pledge to ditch the Ripple vs. SEC case appeal.
Why This Matters
Bull traps in financial markets come due to fear of missing out (FOMO), as crypto traders fall for โbuy the rumour, sell the news’ type of events.
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