XRP at Critical Juncture: Could $1.90–$1.93 Level Represent a Significant Bear Trap Setup?

Technical analysts are raising concerns about a potentially significant bear trap configuration forming in XRP around the $1.90–$1.93 price band. According to market observers tracking the asset, this zone holds particular importance due to concentrated liquidity below current levels and the proximity to the 20-month exponential moving average (EMA), which currently sits near $1.93.

Key Technical Levels Under Scrutiny

The $1.90 mark has emerged as a critical support floor, representing substantial buying interest from larger market participants. This level serves as more than just a price point—it functions as a major liquidity pool that could trigger significant moves if breached decisively. Meanwhile, the 20-month EMA at approximately $1.93 acts as a crucial trend-defining indicator for longer-term price action.

What the Data Reveals

With XRP currently trading at $2.12, the asset sits roughly 11% above the suspected trap zone. This positioned leaves room for meaningful pullback scenarios. Should XRP consolidate and close decisively above the 20-month EMA during a monthly timeframe, analysts interpret this as a potential capitulation signal—potentially indicating that sellers have exhausted their momentum.

Conversely, if the price action breaks sharply below the $1.90 support level with conviction, it could open the door to more severe downside exploration. The critical distinction lies in whether selling pressure dissipates at these technical anchors or overwhelms them entirely.

What Traders Should Monitor

The distinction between a false breakdown (bear trap) and genuine weakness hinges on price action confirmation. A monthly close above the moving average would suggest exhaustion of selling pressure, while a clean breakdown could indicate the need to reassess support structures at deeper levels. The coming weeks will likely prove pivotal in clarifying XRP’s intermediate-term directional bias.