CryptoInsightUK, a British analyst, warns traders of a deliberate price trap in XRP aimed at shaking out weak hands and triggering stop-loss orders to benefit larger players.
In a detailed 13-minute analysis covering XRP, Bitcoin, and Ethereum liquidity, he highlights XRP’s ongoing five-month downtrend, with prices clinging below a descending trend line since the New Year peak. He predicts a drop below current support levels to reset market conditions, scare out late buyers, and prime the market for a significant rally toward $8 to $12.
The analyst suggests this trap may involve an initial rally of 15-20% to lure traders into believing the bearish phase is over, only for the price to sharply reverse and dive into deeper liquidity zones. He implies this pattern is engineered to frustrate retail participants.
Bitcoin is seen as potentially serving as a decoy, recently breaking out of its consolidation but likely staging another liquidity sweep after a possible rise toward $115,000. The analyst maintains a long-term Bitcoin price band between $150,000 and $220,000, encouraging dollar-cost-averaging into altcoins while keeping some funds reserved for expected downturns.
An elaborate scenario involves Bitcoin dominance temporarily rising to 66-74%, causing altcoins like XRP to lose value before reversing as capital flows back. However, this sequence is viewed as less likely due to the need for precise macro factors, such as potential legislative developments in Washington triggering a Bitcoin-focused rally.
Geopolitical risks and ongoing macro uncertainties are acknowledged as possible short-term catalysts for market declines but are seen as accelerants toward a final capitulation and subsequent upward trend.
The analyst advises caution against chasing breakouts without considering these hidden market dynamics, warning of fast liquidations for those caught on the wrong side. He plans to deploy his last funds around XRP prices near $1.80 to $1.90, expecting a sharp, short-lived downturn before the next rally.
At the time of reporting, XRP was trading at $2.16.