XRP News Today: XRP Faces Potential Bull Trap, Analyst Warns of Sharp Reversal

Pseudonymous analyst CryptoInsightUK has issued a warning about a potential bull trap for XRP. In a video published on June 8, the analyst presented a scenario where XRP could surge to $2.30–$2.40 in the short term, only to reverse sharply and experience a liquidity flush before any sustainable breakout occurs. This prediction is based on market structure and liquidity dynamics, particularly the buildup of resting orders beneath XRP’s current range. According to the analyst's internal models, such liquidity zones are statistically touched “80% of the time.”

The analyst emphasized that he is not rooting for a correction but is merely presenting what he sees. He described multiple structural paths for XRP, including one where it immediately breaks out and another where it briefly rallies to sweep local highs before flushing downward to form a bullish divergence. The analyst is watching for a bullish divergence pattern where the price forms a lower low while the RSI prints a higher low, a setup he uses to identify bottoming structures.

Despite the bearish tactical setup, the video struck an upbeat macro tone. The analyst cited four near-term catalysts: the Genius Act on stablecoin oversight, the imminent filing deadline in the SEC’s remedies phase against Ripple, the July decision window for a spot-XRP ETF proposal, and a renewed expectation of accommodative fiscal policy. He argued that these factors could lead to significant asset price increases, with XRP potentially benefiting even more.

Turning to Bitcoin, the analyst observed an ongoing decline in trading volume, suggesting indecision or exhaustion. He highlighted a CME futures gap around $92,000–$93,000 and added that fixed range volume analysis points to a possible pullback zone at $96,000–$97,000. He projected a scenario where BTC dips into this range before resuming its upward trajectory, noting a similar divergence setup at $75,000 earlier this year.

In the final hour before the video, XRP had “squeezed up with some volume,” but the analyst urged caution. While open interest had risen sharply, funding remained green—suggesting net long positioning—and aggregate premium had turned red. This imbalance could cause a sharp move lower if the market fails to hold current levels. The analyst warned that this could lead to a more aggressive, faster move to the downside, with the risk of liquidating leveraged positions.

XRP’s relative performance against ETH and BTC also came under review. While it had begun testing resistance zones, neither the XRP/ETH nor the XRP/BTC charts had decisively broken out. The analyst cautioned that XRP could still be in a range-bound chopping pattern, losing strength until it sees some confirmations to the upside. At the time of the video, XRP was trading at $2.23.