XRP Signals Critical Technical Setup: Bear Trap or Breakout Opportunity at Key Resistance Levels

BankruptWorker · 2026-01-05T13:48:22+00:00

XRP is at a crucial price point between $1.90 and $1.93, where a potential bear trap may form. Significant support and the 20-month EMA create a make-or-break scenario. A decisive close above could signal a bullish reversal, while a drop below might indicate continued decline.

BankruptWorker

2026-01-05 13:48:22

Abstract generation in progress

According to technical analysis shared by ChartNerd on 36 Crypto, XRP is approaching a pivotal moment in its price action around the $1.90–$1.93 zone, where a potential bear trap pattern may be developing. This price region holds particular significance due to multiple converging technical factors that could determine the asset’s near-term direction.

The Liquidity Support and EMA Confluence

The $1.90 level represents a critical liquidity support zone where significant trading interest has historically accumulated. More importantly, this level aligns closely with the 20-month exponential moving average (EMA), currently trading around $1.93. This confluence of price support and the major trend filter creates what technical analysts call a “make-or-break” scenario for XRP’s intermediate-term trajectory.

Understanding the Bear Trap Scenario

A bear trap forms when selling pressure appears overwhelming near support, only to reverse sharply higher. In XRP’s case, if the asset closes decisively above the 20-month EMA on a monthly timeframe, it would confirm a potential reversal pattern and signal that the preceding downtrend has likely bottomed. This bullish confirmation would suggest that bears failed to sustain lower prices despite significant selling opportunities.

Downside Risks and Confirmation Levels

Conversely, if XRP breaks decisively below the $1.93 level supported by the 20-month EMA, the bear trap thesis would be invalidated. Such a breakdown could open the door to deeper downside exploration and would indicate the downtrend remains intact.

Current Market Context

At the time of analysis, XRP was navigating these critical technical levels, with traders closely monitoring whether the asset would hold above support or fail to defend the $1.90–$1.93 zone. The resolution of this pattern will likely provide clarity on whether the bear trap scenario materializes or if further weakness lies ahead.

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