XRP News Today: XRP Bounces at $3.15 as Bull Trap Fears Intensify

XRP stands at a critical juncture as market analysts debate whether the recent price action represents the start of a sustainable third wave or a potential bull trap. Crypto commentator Sasha why NOT has framed the question as both technical and existential, asking whether the cryptocurrency is entering a new bullish phase or facing a volatile setup that could unravel once momentum wanes [1]. The crypto community is divided, with arguments split between bullish continuation and caution [1].

In mid-July, XRP surged to a record high of $3.65, reigniting mainstream attention and triggering both FOMO and profit-taking. However, the subsequent pullback saw prices consolidate around $3.25, with volatility easing but liquidity remaining high [1]. According to Sasha, structural factors—including rising institutional interest, favorable on-chain activity, and whale accumulation of 900 million XRP within 48 hours—suggest a strong foundation for a potential third wave. These developments are seen as enhancing XRP’s utility and on-ramp potential [1].

Caution, however, is warranted, as bull traps often originate from parabolic spikes driven by short-term leverage and headline-driven trades. A drop in momentum could quickly reverse such setups. Analysts have presented a range of views, from optimistic Elliott Wave targets to more cautious forecasts, reflecting the uncertainty in potential outcomes [1]. Sasha noted that while whale accumulation and a recent legal win favor the bulls, the technical setup and Bitcoin’s dominance at 58.87% indicate the risk of a significant correction remains [1].

Market commentator Crypto Eagles observed that XRP had cleanly reclaimed the $3.15 support level, signaling a pivotal shift in market structure. This reclaim followed a pullback and a fill of a Fair Value Gap (FVG), a technical pattern often associated with price retests and continuation. Maintaining $3.15 as support is crucial for the bullish setup to remain intact [1]. A confirmed breakout above this level could see XRP move toward $3.3 and eventually $3.4, with $3.3 identified as a key near-term target [1].

The reclaim of $3.15 reflects a constructive bias in the short- to mid-term outlook, as higher lows and confirmed support levels reinforce buying pressure. Yet, the broader market has moved beyond the question of whether XRP can rally—it already has. The critical question now, as Sasha why NOT reiterates, is whether this momentum marks the beginning of a durable upward trend or a peak that lures latecomers into a correction [1].

Source: [1] XRP at a Crossroads: Third Wave Breakout or Bull Trap? (https://coinpaper.com/10504/xrp-at-a-crossroads-third-wave-breakout-or-bull-trap?utm_source=snapi)