XRP price is trading above $0.95 within a narrow range. It is currently consolidating in between $2.7 and $3.1, looking for a direction for the next big price move. The cryptocurrency recently experienced a sharp decline after briefly surpassing the $3.4 mark in mid-July, leading to speculation about a potential bull trap. Traders are encouraged to proceed with caution and wait for a clear breakout from the indecisive range we are in before entering any new trades.
The $2.7–$3.4 range becomes a short-term support area for XRP’s price in the meantime, possibly absorbing further drops. If bulls succeed in breaching this resistance, it could allow XRP to retest the high at $3.4. A drop below the $2.7 support level could expose the $2.58 support as the next crucial level for XRP.
Recent Price Action and Fibonacci Retracement
XRP did have a helluva run in mid-July, punching through the $3.4 resistance and heading up to $3.8. This strategic move opened XRP up to one of the largest liquidity pools, gaining XRP billions in trading volume.
Tether’s breakout was brief, at best, as aggressive sellers immediately flooded into the market, pushing the price down sharply. This decline discovered support within the 0.5–0.618 Fibonacci retracement zone, prompting the bullish pullback.
Key Support and Resistance Levels
The 0.5–0.618 Fibonacci retracement zone has previously served as support and when tested, resulted in a minor reverse correction of XRP’s price. At the moment, the price is clearly capped between $2.7 support and $3.1 resistance.
A decisive move above or below these levels is expected to determine XRP’s short-term path. A breakout above $3.1 would be a strong signal that bullish momentum has returned. Conversely, any break under $2.7 would open the door to a more substantial dump.
Potential Bull Trap and Market Outlook
The rapid reversal after price broke above $3.4 adds support for the bull trap scenario. This suggests that the opening week rush may have just been a strategy to hype up demand. A price drop usually comes not too long afterward.
With volatility still an ever-present specter in today’s marketplace, traders need to always be on guard and pay special attention to price action. A solid breakout, above $3.1 or below $2.7, will almost assuredly decide XRP’s next directional move.
