XRP (XRP-USD) could surge to $3.20, but only if it successfully breaks a major resistance level. Analysts warn that while the setup looks bullish, a potential bull trap could shake investors before the next big move.
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XRP Must Break $2.75 to Confirm the Uptrend
XRP has been trading sideways between $2.85 and $2.30, struggling to gain momentum. According to market analyst Egrag Crypto, the altcoin is forming an ascending triangle pattern, a bullish technical indicator. The key? A breakout above $2.75.
“Closing above this level will provide bullish confirmation to continue the upward trajectory, with a measured target of $3.20,” Egrag Crypto said. That would mean a 20% gain from current levels.
However, other analysts, including Dom, stress that XRP must flip $2.80 into support before making a serious push toward $3.00. CasiTrades echoed this, calling $2.82 a key resistance, while warning that $3.00 is another major barrier XRP must break before a larger move can happen.
Analysts Warn of a Possible Bull Trap
Despite the bullish setup, caution remains. Egrag Crypto warned that a major correction could begin by mid-March, potentially marking the end of Wave 2 in an Elliott Wave count.
“I believe we could see a significant correction starting mid-March,” he said, adding that Wave 3 is still ahead and investors might not be bullish enough yet.
SEC’s ETF Acknowledgment Fuels Optimism
Beyond technicals, fundamentals are shifting. The U.S. Securities and Exchange Commission (SEC) has acknowledged several XRP ETF filings. This has boosted optimism for long-term price appreciation.
Crypto commentator Polly even suggested that these ETF developments could send XRP to a staggering $6.00, calling it a potential “god candle” moment for the asset.
Liquidity at $2.85 Holds the Key
For now, XRP’s liquidity is concentrated at $2.85, meaning the market is waiting for a breakout before choosing a direction. XRP has tested this level twice in three weeks, indicating that a breach could finally unlock $3.20.
Will XRP push higher or fall into a bull trap? The next few days could decide everything. At the time of writing, XRP is sitting at $2.6860.
