An XRP price drop below $2.95 may indicate a bull trap aimed at collecting downside liquidity, potentially followed by a 45% rally towards new highs. XRP is on track to close its largest monthly candle, exceeding its previous high of $2.07. Despite maintaining a higher structure on the daily chart for three months, it has struggled to surpass the all-time high of $3.40. Retail investors have driven the recent rally, spurred by positive news regarding Ripple. However, recent aggregated spot volume signals a decline compared to prior months, potentially indicating a drop in trading activity. Additionally, liquidity pockets created during recovery could lead to market moves aimed at collecting stops just below the $3 psychological level. The long-term outlook remains bullish if XRP breaks above a recently formed bull flag, targeting a price of $4.50 to $5.00 after a successful breakout.

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