๐ $XRP : "The Calm Before The Drop?" ๐
๐ Current Price Action:
XRP just completed a textbook V-shaped recovery from the local bottom near 2.0343, spiking straight through resistance zones at 2.0456, 2.0607, and 2.0680 before facing rejection near 2.0882 โ 2.0908, a known liquidity grab zone.
๐ง Pattern Recognition:
๐น What weโre seeing now resembles a "Bull Trap" โ an impulsive move up catching late longs, followed by slow distribution and a potential markdown.
๐น The projected blue path is showcasing an Elliott Wave Corrective Flat or Head and Shoulders in formation.
๐น Notice how price hits the key resistance area between 2.0882 โ 2.0944 multiple times and fails to hold โ a double top / exhaustion sign.
๐น High wick rejections + slowing momentum = ๐จ caution for bulls.
๐ Next Probable Move:
Based on the chart:
๐ Price is likely to oscillate sideways between 2.0800 โ 2.0940 in a distribution phase.
๐ Expect a sharp dump down to 2.0680 and even 2.0607.
๐ If selling volume picks up there, a full drop to 2.0450 โ 2.0343 is on the table.
๐ฅ This aligns with a classic liquidity sweep of local lows after baiting longs.
๐ฏ Potential Trade Setup:
๐ฐ Short Entry Idea:
๐ธ Entry Zone: 2.0880 โ 2.0920
๐ธ TP1: 2.0680
๐ธ TP2: 2.0600
๐ธ TP3: 2.0450
๐ธ SL: 2.0950 (tight structure break)
๐ฐ Long Re-entry Idea (After Flush):
๐ธ Buy Zone: 2.0340 โ 2.0450
๐ธ TP1: 2.0680
๐ธ TP2: 2.0880
๐ธ SL: 2.0280 (invalidation of structure)
๐ Summary:
XRP has pumped hard, but signs of exhaustion and rejection at resistance are clear. A scalp short could provide great risk-reward as the market looks to trap longs before dipping to reload zones. This is not a time to chase green candles ๐ซ, but to play the fade ๐ญ.
๐งช Indicators Confirming Bearish Divergence:
RSI overbought ๐
Strong wick rejections ๐ง
Volume divergence ๐
๐ Always manage risk. These setups are short-term, ideal for scalpers and intraday swing traders.
