XRP Faces Critical Resistance as It Aims for $3.20 – But Beware of the Bull Trap

XRP Could Smash Past $3.20—But Analysts Warn of a Bull Trap

XRP (XRP-USD) could see a significant surge toward $3.20, but only if it manages to break through a critical resistance level.

• Analysts caution that while the setup appears bullish, a bull trap could shake investor confidence before the next big move.
• The key to further gains lies in breaking through the $2.75 resistance level, which would confirm an upward trajectory.

XRP Must Break $2.75 to Confirm the Uptrend

XRP has been moving sideways, trading between $2.85 and $2.30, struggling to gain solid momentum.

• According to market analyst Egrag Crypto, XRP is forming an ascending triangle pattern, a bullish technical indicator.
• The critical factor for confirmation is a breakout above $2.75, which would signal a potential move toward $3.20.
• Egrag Crypto suggests that closing above this level would provide the necessary bullish confirmation, marking a 20% gain from current levels.

However, other analysts, such as Dom, emphasize that XRP must first flip $2.80 into support before making any serious push toward $3.00.

• CasiTrades echoes this, noting that $2.82 serves as a key resistance point.
• These analysts also warn that $3.00 is a significant barrier, and XRP must break this level before it can continue its upward move.

Analysts Warn of a Possible Bull Trap

Despite the bullish technical setup, caution remains in the market.

• Egrag Crypto warned that a significant correction could occur by mid-March, potentially signaling the end of Wave 2 in an Elliott Wave count.
• He mentioned that Wave 3 is still ahead, and that investors may not be bullish enough yet, potentially leading to a market pullback.
• This caution signals the risk of a bull trap, where XRP could rally temporarily only to fall back after reaching a certain point.

SEC’s ETF Acknowledgment Fuels Optimism

Fundamentals are also shifting in favor of XRP.

• The U.S. Securities and Exchange Commission (SEC) has acknowledged multiple XRP ETF filings, fueling optimism for long-term price appreciation.
• Crypto commentator Polly even suggested that these ETF developments could send XRP as high as $6.00, marking a potential “god candle” moment for the asset.
• This ETF acknowledgment could contribute significantly to XRP’s future growth.

Liquidity at $2.85 Holds the Key

Currently, XRP’s liquidity is concentrated around the $2.85 level, with the market awaiting a breakout.

• XRP has tested this price point twice in the last three weeks, showing signs that a breach could unlock further price movement.
• A successful move above $2.85 could open the door for $3.20, signaling a potential rally.

Will XRP push higher, or will it fall into a bull trap?

• The coming days could be crucial in determining whether XRP can maintain momentum or face a setback.
• As of now, XRP is sitting at $2.6860, with the next move awaiting confirmation.