Crypto News

XRP Could Soon Trap Bulls; Here’s How Low Traders Think It Could Decline

XRP, like most other altcoins, has been caught within a bout of sideways trading throughout the past several days and weeks
The cryptocurrency’s rangebound trading may not last long, however, as analysts are now noting that it could be poised to see some major downside in the days and weeks ahead
Its next notable decline could be sparked by a bull trapping movement higher
Some analysts are even pointing to a fractal that suggests new lows could be imminent

XRP has been hovering sideways around $0.20 over the past several days and weeks, struggling to garner any notable momentum as Bitcoin and most other major digital assets also consolidate.
It now appears that the crypto could soon see a slight rise higher, although this movement could mark a “bull trap” that is followed by intense downside.
Some analysts are also pointing to a striking fractal pattern that suggests the token could be positioned to see some notable downside in the days and weeks ahead – potentially even setting fresh multi-year lows.
XRP Continues Consolidation, But Turbulence Could be Imminent
At the time of writing, XRP is trading down just under 1% at its current price of $0.199, which is around the price at which it has been trading at for the past several days.
This sideways trading has come about as the result of that seen by Bitcoin. The benchmark cryptocurrency has struggled to garner any decisive momentum as it trades in the lower-$9,000 region.
XRP could soon put a swift end to this price action, however, as analysts are noting that it may soon push higher as it traps buyers.
One analyst mused this possibility in a recent tweet, explaining that he believes it will rally from its current price of 0.0000217 up towards 0.000024 BTC, before posting a swift decline that leads it lower.
This movement would mark a “bull trap.”
“XRP looking pretty nice for a bearish retest of HTF resistance imo. This could of course deviate and fall back into the range, but the R/R to punt a long here is pretty decent,” the trader noted while pointing to the below chart.
Image Courtesy of Smokey
This Fractal Spells Doom for the Embattled Token
Although fractal patterns are controversial and have a spotty track record of accuracy, XRP’s recent price action has been strikingly similar to that seen in early-2019, just before it faced a capitulatory decline that led it to plunge by 50%.
The chart below, offered by another popular trader, highlights just how clear these similarities are.
Image Courtesy of Smokey
If the crypto does follow a similar path forward, it could be poised to set fresh multi-year lows against its Bitcoin trading pair.
Featured image from Shutterstock.

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

Write a Comment

Related Crypto News

Crypto Analyst Releases Stock-to-Flow Model Indicator for BTC Bull Run
Updating its popular BTC price model, crypto analyst PlanB predicts the cryptocurrency could see a rally to $100K by...
Bitcoin Closes May Candle Above Crucial Resistance, and That’s Big for the Bull Case
Just over an hour ago as of this article’s writing, Bitcoin closed the price candle for the month of...
UK Government Seizes $185 Million From Dormant Bank Accounts for Crisis Relief
The UK government is seizing funds in dormant bank accounts worth approximately $185 million to fund its coronavirus relief...
Ethereum Makes 3rd Attempt at New Highs as Options Skew Turns Negative
Ethereum made its third attempt to set new local highs against its Bitcoin trading pair in 2020 yesterday. This...
Bitcoin Closing the May Candle Above $9,360 is Crucial For Bulls: Here’s Why
In just a few minutes’ time, Bitcoin will close May’s price candle. Analysts say that this close will be...
Max Keiser: There Isn’t Anything Crypto Altcoins Do That Bitcoin Won’t Do
Ever since the peak of the 2018 crypto bull market, Bitcoin has been front and center for most investors....

Featured Crypto News

Bitcoin Sells Off At $9.5K Ahead of Trump’s China Response; What’s Next
Bitcoin breaks below $9,500, a crucial support level, a day after breaching it to the upside. The cryptocurrency pared...
Bitcoin May Surge as Chinese Yuan Gets Fixed to Lowest Price in a Decade
Unlike Bitcoin and other free markets, the Chinese yuan market is fixed and somewhat controlled by the country’s central...
Coinbase Now Supports Tezos Staking Rewards for UK and Some EU Users
Major crypto exchange Coinbase is rolling out Tezos staking rewards for users in the United Kingdom and three European...
Digital Currencies Could Threaten US Geopolitical Power, Warns JPMorgan
“There is no country with more to lose from the disruptive potential of digital currency than the United States,”...
Ethereum Could Stage Strong Rally As Double Bottom Pattern Emerges
Ethereum nosedived below the $202 support zone against the US Dollar. ETH price revisited the $192 support and it...
Bitcoin Traders Now Eye $6-7Ks After 4 Failed Attempts to Break $10K
The price of Bitcoin is set to test lower levels as support after numerous attempts to break $10,000 have...