XRP's $1.35-$1.40 Bounce Shows 60-70% Bull Trap Risk

2026-02-06 07:39:29

⬤ XRP bounced hard after dropping to $1.11, recovering back near $1.30 on the XRP chart. The pattern looks familiar—price seems to recover but ends up falling again later. This bounce is happening inside a bigger downtrend that’s still very much in play.

⬤ The rally hit a wall between $1.35 and $1.40, where buying momentum started dying out. After getting oversold from the flush down, momentum spiked quickly but faded just as fast. Classic relief rally behavior that often runs out of steam without confirming any real reversal.

⬤ There’s roughly a 60-70% chance this move turns out to be a bull trap. Price can’t punch through resistance while the broader trend keeps pointing down, which means we could easily see a retest of those lows or even lower prices. Sellers are still in control despite the bounce.

⬤ The XRP action shows how tricky bounces can be during bigger declines—they create confusion about where price is actually headed. What happens at this resistance zone will decide if XRP stabilizes here or slides back down within the existing structure.

XRP21,03%

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.