XRP has experienced intense volatility in the last 24 hours, as its price plunged from $2.44 to a low of $2.29. This development suggests a bear trap is at play as it triggered panic, and traders sold short as they feared a continued downward trend.
XRP bulls absorb panic sell-off as volume supports rebound
However, according to CoinMarketCap data, the bear trap is easing as trading volume has supported price action. The sudden price drop has also started to climb back up as XRP buyers step in to snap up the volume.
Notably, stop-loss actions triggered the earlier high selling volume. Now that XRP bulls have stepped in, the market is witnessing a price reversal.
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The strong buying pressure that XRP is witnessing now could be institutional players or whales absorbing the sell order to support the price rebound.
At press time, trading volume had increased slightly by 3.07% to $3.46 billion. This uptick has supported XRP’s rally back up, as it currently exchanges at $2.35.
Even though prices remain 3.62% away from their previous level, it shows XRP’s resilience in posing a rebound after the bear trap. It has helped XRP recover quickly after breaching the $2.30 support level.
$2.65 resistance in focus as chart eyes bullish pattern
However, XRP bulls are set on pushing the price back to $2.50. It is worth noting that if XRP manages to lock in on $2.65, technical indicators show it could complete a bullish inverse head-and-shoulders pattern.
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Such a scenario could set XRP up for a rally toward $3.42. If the asset fails, however, the price risks slipping to test the $2.0 support.
Interestingly, historical data suggests XRP could continue on an upward trajectory. May has mostly been a bullish month for the coin, and the price might hit $3.0 before the end of the month.