XRP Price Breakdown Makes Bears Cheer, But Are They Missing the $1.28 Trap?
Despite a bearish head-and-shoulders breakdown, rising XRP accumulation suggests traders might be falling into a $1.28 trap.Summary
XRP price recently fell over 5%, confirming a bearish head-and-shoulders breakdown on the 8-hour chart, projecting a downside target near $1.12. This has fueled bearish sentiment, evidenced by rising open interest and deeply negative funding rates in derivatives markets.
However, on-chain data contradicts this pessimism. Exchange outflows have increased by 23% in five days, indicating investors are moving XRP to private wallets for holding rather than selling. Furthermore, mid-term holders (3-6 months) have increased their supply share by nearly 60%, showing strong conviction during the dip.
This conflict suggests the breakdown might be driven by long liquidations rather than spot selling. A critical support zone exists between $1.27 and $1.28, where over 444 million XRP has been accumulated, potentially acting as a strong defense against the projected fall. If XRP reclaims $1.39, it could invalidate the breakdown and trigger a short squeeze.
(Source：BeInCrypto)