XRP Bulls Get Crushed as False Breakout Above $2.30 Backfires

XRP just delivered a brutal lesson to overleveraged traders. The token briefly broke above $2.30 resistance but quickly reversed, wiping out days of gains and triggering massive liquidations among bullish positions.

XRP's Rising Wedge Spells Trouble for Bulls

Since mid-June, XRP has been stuck in a rising wedge pattern - and that's not good news for bulls. The token kept grinding higher while getting squeezed between moving averages above and trendline support below. Yesterday looked promising when XRP finally broke out of this squeeze on higher volume, pushing past $2.30.

But here's the kicker - instead of continuing higher, XRP did a complete 180. The price crashed back down, closing below the breakout level. This fake-out caught tons of long positions off guard, forcing them to liquidate and proving just how shaky the current market really is.

What makes this even worse? That volume spike everyone thought was bullish actually turned out to be bearish. Smart money was probably using the breakout as their exit ramp, leaving retail traders holding the bag.

Technical Indicators Flash Red for XRP

The 50 EMA is starting to roll over and head toward the 100 EMA - that's textbook bearish convergence. When you see this kind of moving average action, it usually means deeper corrections are coming.

Right now, those moving averages are acting like a ceiling above XRP, making any recovery attempt that much harder. The RSI sits around 55, which means the market isn't oversold yet. Translation: there's plenty of room for more pain if sentiment keeps souring.

What's Next for XRP?

All eyes are on the $2.10-$2.20 support zone. If XRP can't hold this level, we could see a serious cascade of stop-loss orders hitting the market. The next support after that? Much, much lower.

This false breakout has basically reset everyone's expectations. Until XRP can actually break those previous highs with convincing volume, any talk of a sustained rally is probably premature. The market just reminded overleveraged bulls that it's not done shaking out weak hands yet.