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XRP Bear Trap Warning: Here’s What Could Happen Next

XRP Bear Trap Warning: Here’s What Could Happen Next

  • ChartNerd warns XRP may be forming a historic bear trap that could trigger panic selling.
  • The $1.90–$1.93 zone is critical, with $1.90 as key liquidity support and the 20-month EMA (~$1.93) acting as a major trend filter.
  • A monthly close above the 20-month EMA would signal a bottom, while a decisive break below it could lead to deeper downside.

Crypto analyst ChartNerd has issued a warning to XRP traders, suggesting that the asset may be setting up what he describes as the biggest bear trap in its history.


According to his analysis, a temporary move below key support levels could mislead market participants into expecting deeper downside, only for the price to reverse sharply afterward. The warning comes as XRP trades near a critical technical zone that has defined multi-month price action.


$1.90 Support Level Under the Spotlight

ChartNerd highlighted the $1.90 region as a major area of liquidity and demand. He noted that if XRP briefly sweeps below this level, it could trigger panic selling and stop-loss cascades, creating the appearance of a bearish breakdown.


However, the analyst argues that such a move may not signal genuine weakness. Instead, it could represent a liquidity grab designed to flush out weak hands before a stronger upside move materializes.


Also Read: Analyst: XRP Is About to Explode Like in 2017, Here’s Why



20-Month EMA Emerges as a Key Technical Marker

A central focus of ChartNerd’s analysis is the 20-month exponential moving average, currently sitting around $1.93. This level has historically acted as an important trend filter for XRP, separating broader bullish and bearish phases.


According to the analyst, a monthly close above the 20-month EMA in December would likely confirm a local market bottom. Such a close would suggest that XRP is maintaining structural support despite recent volatility.


The accompanying chart shows XRP consolidating just above the 20-month EMA after a strong impulsive move earlier in 2025. Price is currently hovering near this yellow moving average line, with wicks testing lower levels but failing to sustain a breakdown so far.


This behavior supports the idea that buyers are still defending the trend, even as short-term pressure builds. ChartNerd emphasized that December’s monthly close will be decisive in determining whether XRP stabilizes or enters a deeper corrective phase.


xrp analysis by chartnerd

Source: ChartNerd/X

Risk of Further Downside Still Remains

While the analyst leans toward a bear trap scenario, he also cautioned that losing the 20-month EMA decisively could open the door to further downside. A sustained close below $1.93 would likely confirm additional market “depression,” potentially pushing XRP into lower demand zones before any recovery attempt.


As the year draws to a close, XRP finds itself at a critical technical crossroads. ChartNerd’s analysis suggests that short-term weakness may be deceptive, with the potential for a sharp reversal if key levels hold.


Whether the market confirms a historic bear trap or signals a deeper correction will largely depend on how XRP closes the month. For now, all eyes remain on the $1.90–$1.93 zone as traders await clarity on the asset’s next major move.


Also Read: Why is XRP Price Crashing Today Despite ETF Inflow Streak?