Rebound Ahead or Bull Trap?

Is There Light at the End of the Tunnel for XRP?

XRP trades at $1.37 per CoinCodex data, reigniting debate: is a sustainable rally underway or another bull trap? Technicals show a bullish divergence on the 12-hour chart, with RSI forming higher lows as price hit lower lows, the same pattern that triggered a 28% rally last December.

Market data shows a more cautious XRP outlook. Exchange outflows have plummeted 85%, from 107M to 16M XRP, signaling weakening buying pressure. Long-term holder accumulation has also fallen over 60%, from 337M to 128M XRP, reflecting lower investor conviction. 

Yet, trading activity remains robust, with $4.11B moved on Upbit in just seven days despite the price dip.

Therefore, XRP faces heightened liquidation risk: a drop below $1.34 could trigger forced selling toward $1.12, fueling short-term panic despite long-term bullish trends. Currently, XRP signals a breakeven phase as the market enters a critical reset zone.

XRP Faces Critical $1.50 Test Amid Weak Demand and Mixed Signals

Reclaiming $1.50 is crucial, as it aligns with the 20-day EMA and prior resistance. Without surpassing this level, rebounds risk remaining volatile and short-lived.

Technical indicators show slowing downside momentum, hinting at potential stabilization. 

On the other hand, on-chain data reveals weak demand, creating a paradox: is the market quietly accumulating for a breakout, or merely building liquidity for another drop? Aggressive derivatives deleveraging places XRP at a critical crossroads, fueling renewed reset speculation.

Market analyst VinCoop warns of caution for XRP: 

What is the takeaway? Well, optimism in charts isn’t enough. Tracking exchange flows, long-term holder activity, and crucial support and resistance levels, without clear demand signals, any rally may be short-lived.

Conclusion

XRP faces a critical crossroads: bullish technical signals suggest potential upside, but declining holder accumulation, shrinking exchange outflows, and high liquidation risks warn of caution. Key levels, $1.34 support and $1.50 resistance, will dictate whether XRP rebounds or risks another sharp pullback. In this climate, disciplined, data-driven decisions are essential.