🚀 XRP: The Swing Failure Pattern – Bottom Is In or Another Liquidity Trap?
$XRP is sending shockwaves through the community as we close out 2025. After a brutal correction from its $3.66 peak down to the $1.85–$1.90 zone, the charts are flashing a classic Swing Failure Pattern (SFP).
For the uninitiated: a bullish SFP occurs when price sweeps below a key support level to hunt liquidity (triggering stop-losses) but fails to stay there, closing back above the level. This "fake-out" often traps bears and signals that the "smart money" is stepping in.
The Technical Breakdown:
The Sweep: XRP briefly dipped below the psychological $2.00 support, hitting intraday lows near $1.83—right at the 78.6% Fibonacci retracement.
The Rejection: Instead of a collapse, buyers stepped in, pushing the price back into the $1.90 range.
The Signal: This "wick" below support suggests the bottom might be forming. Historically, similar patterns in XRP have preceded massive relief rallies.
Why This Matters Now:
Market sentiment is currently in "fear" mode, with search interest for "bear market" at 5-year highs. As a veteran trader, I’ve seen this movie before: maximum pain often coincides with a major reversal. If XRP can reclaim and hold the $2.20–$2.30 resistance, the road to $3.00+ opens up again.
The Pro Tip:
Don't FOMO. A valid SFP requires a daily close back above the previous swing low. Watch the RSI—if it starts diverging bullishly while price is flat, that’s your confirmation.
What’s your move?
Are you accumulation-mode at these levels, or do you think the $1.63 gap still needs to be filled? 📉📈 Let’s discuss in the comments!
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