XRP Faces Bearish Reversal Risk After Failed Breakout

XRP’s recent price movement is flashing warning signals for both traders and investors. Following a bullish breakout attempt, the token failed to maintain upward momentum, suggesting a potential fakeout and imminent retracement. XRP briefly surged above key moving averages and tried to surpass the $2.27 resistance, but quickly reversed, falling below the 50 and 100 EMA lines. This sharp rejection, paired with a visible wick and increased volume, resembles a classic bull trap.

Such failed breakouts often signal a lack of buyer conviction. Markets tend to retest major resistance levels to gauge strength, and abrupt reversals indicate that bullish sentiment is not strong enough to sustain rallies. In XRP’s case, the quick fallback suggests bears have regained control after buyers failed to push the price higher.

Adding to the bearish sentiment is the Relative Strength Index (RSI), which has dipped below the neutral 50 mark, showing fading momentum. Trading volume, which spiked during the breakout, is now tapering off—another sign of waning enthusiasm.

The key support to watch is the $2.09 level and the 200 EMA. If XRP fails to hold above this zone, a deeper correction could follow. This level now acts as a crucial line of defense for bulls hoping to prevent a more pronounced downturn.

Unless XRP sees renewed buying pressure and a sharp volume rebound, the recent price behavior could mark one of the most notable fakeouts of the year. Traders should remain cautious, as the risk of a larger retracement grows with each failed recovery attempt. The current setup calls for vigilance as the market reassesses XRP’s strength amid weakening bullish signals.