XRP’s 20% Bearish Bait Keeps Trapping Traders — Charts Reveal the Next Risk Zone
XRP's recent breakdown below $1.33, suggesting a 20% drop, appears to be bearish bait that trapped short sellers before a rebound.Summary
XRP recently experienced a breakdown below the critical $1.33 support level, confirming a bearish head-and-shoulders pattern that projected a 20% decline. However, the price quickly reversed, suggesting this breakdown acted as "bearish bait" to trap short sellers, evidenced by a surge in open interest and deeply negative funding rates just before the rebound.
Data shows that while short positioning intensified, large wallets (whales holding 1M to 100M+ XRP) accumulated approximately 150 million XRP during and immediately after the breakdown, indicating they were absorbing supply rather than panic-selling. This accumulation during fear suggests the bearish move might be invalidated.
XRP is now approaching another key support zone near $1.31. A decisive break below this level could reactivate the 20% downside target, with next targets at $1.26 and $1.17. Conversely, a brief dip followed by a quick recovery could trigger another short squeeze. Reclaiming $1.40 would weaken the bearish setup, while a move above $1.67 would fully invalidate the pattern.
(Source：BeInCrypto)