XRP Just Witnessed the Largest Bear Trap in History. Here’s What Happened

Armando Pantoja, a prominent crypto investor and member of the Benzinga crypto advisory board, believes XRP traders just witnessed “the largest XRP bear trap in history.” His remark followed a sudden price reversal that saw XRP briefly dip below $3 before recovering. The move began with a strong rally, which saw XRP steadily climb above previous resistance levels, culminating in a new all-time high of $3.65 . This move excited investors who have been waiting since 2018 for this milestone. However, the market shifted very quickly. This peak was immediately followed by a rapid drop to $2.99 , breaching critical psychological support levels and triggering sell-off activity. This price decline was short-lived, as XRP quickly recovered, holding support at $3 and rebounding back to its current level around $3.19. The sharp reversal caught many short-position holders unprepared, as they anticipated a deeper correction following the dramatic spike. The swift recovery invalidated those expectations and put pressure on traders who bet against the price. We have just witnessed the largest $XRP bear trap in history pic.twitter.com/jsebWHNGe5 — Armando Pantoja (@_TallGuyTycoon) July 26, 2025 Understanding the Bear Trap A bear trap occurs when an asset’s price appears to break down below a key support level, enticing traders to enter short positions in anticipation of further declines. Instead, the asset quickly reverses direction and moves higher, forcing those short sellers to exit their trades at a loss. This kind of setup often accelerates upward momentum as short positions are unwound. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 In this case, XRP’s drop from $3.65 to $2.99 signaled a potential breakdown. The speed of the decline and the breach of the $3 level created a compelling case for bears. But the quick rebound above $3.20 erased that outlook and left those shorting the asset exposed. The trap caused a rapid shift in sentiment as traders scrambled to adjust positions. What sets this event apart is how cleanly the price reclaimed support without confirming a larger trend breakdown. Bear traps aren’t uncommon in crypto , but the scale of this move and the timing just following an all-time high created an uncommonly strong conviction in short positions before reversing sharply. The failed breakdown at $3 now acts as confirmation of buyer strength at that level, reinforcing its technical significance. What’s Next for XRP? XRP’s recovery has reestablished the $3 mark as a key line in the sand. Despite the volatility, the asset continues to trade well above its early July range, and the broader trend remains intact. Analysts are now looking toward double-digits as XRP forms crucial technical indicators. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post XRP Just Witnessed the Largest Bear Trap in History. Here’s What Happened appeared first on Times Tabloid .

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