XRP faces a potential bull trap if its price drops below $2.95, which could lead to a consolidation phase before a significant price rally of up to 45%. Despite a strong bounce from lows of $2.70, risks persist due to liquidity pockets below the psychological $3 level, where traders' stop losses may be targeted. Retail investors have contributed to XRP's recent rise, largely influenced by positive news regarding Ripple and speculation about increased acceptance in the market. However, recent spot trading volumes have shown signs of decline, suggesting traders may become less active. A clear breakout above the current bull flag pattern is anticipated, with targets set between $4.50 and $5.00 following a successful recovery above $3. Immediate bullish reactions within the range of $2.98 to $2.90 are crucial for maintaining upward momentum. Otherwise, continued sideways movement could indicate seller dominance, affecting market sentiment heavily in the upcoming weeks.

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