XRP Price Warning: Analyst Says Rally Is a Trap, Targets Below $1
XRP has bounced above $1.35, but analyst CasiTrades warns traders not to treat it as a trend reversal. The move is framed as a “trap” inside a larger bearish structure: XRP faces resistance after a completed five-wave push, while RSI shows bearish divergence (momentum rising without a stronger breakout).
On the charts, XRP has not made a new high above $1.40, so the analyst argues “nothing has changed” and the current strength may be exhaustion. The downside roadmap is explicit. First target for XRP is $1.13, followed by a deeper push toward the macro 0.786 support near $1.08. The final bearish leg suggests a break below $1 into the 0.854 support area around ~$0.87. CasiTrades links this sequence to the end of a larger corrective impulse wave 2.
Bullish invalidation level: traders should watch the 0.618 resistance/flip zone near ~$1.40; reclaiming and holding it would weaken the bearish thesis.
Bearish
The article is a trader-oriented technical call on XRP, arguing the recent bounce is likely a short-lived relief move rather than a confirmed reversal. The bearish case relies on (1) a completed five-wave move into resistance, (2) RSI bearish divergence, and (3) the fact that XRP has not broken above the key level near $1.40. These elements together often precede renewed downside attempts—similar to past “bull trap” patterns where price rallies back into the rejection zone but fails to establish new highs, leading to a subsequent selloff.
Short term: if traders buy the bounce, liquidity can get stuck and price may rotate back down toward $1.13 and potentially $1.08. This can increase intraday volatility and widen spreads on XRP pairs. Longer term: confirmation via failure to reclaim the ~1.40 (0.618) flip zone would keep the larger bearish structure intact, making the $1 break and ~0.87 area more plausible. Invalidation is straightforward: sustained reclaim of ~$1.40 would signal the thesis is failing and could trigger a reversal trade back upward.