XRP Reclaims 200-Day EMA After Bear Trap

In the early weeks of April, the crypto market witnessed a major downturn as U.S. President Donald Trump introduced reciprocal tariffs on several countries.

The cryptocurrency market continues to project a low-volatility sideways trend since last weekend, as China retaliated against the United States’s barrage of new tariffs. The uncertainty has restricted Bitcoin’s recovery past $85,000, while most major altcoins, including XRP, struggle to hold stable support.

However, the Ripple crypto shows an opportunity for a bullish breakout as price analysis reveals a reversal pattern emerging amid a recent rebound.

Chart Shows XRP Reclaims 200-Day EMA After Bear Trap

In the early weeks of April, the crypto market witnessed a major downturn as U.S. President Donald Trump introduced reciprocal tariffs on several countries. The sudden surge in selling pressure pushed the XRP price below a multi-month support of $2 and plunged the asset to a $1.6 low.

This breakdown was expected to accelerate selling pressure, but the Ripple cryptocurrency recorded a bullish turnaround as Trump announced a 90-day pause on additional tariffs. Thus, the coin price bounced over 29% within two weeks to the current trade at $2.08, while the CoinGecko data shows its market cap has bounced to $121.9 billion.

This upswing regained XRP’s position above the 200-day EMA and marked the previous breakdown as a bear trap.

Falling Wedge Pattern Drives Major Correction Trend

A deeper analysis of the 4-hour timeframe chart reveals that the renewed recovery is forming an inverted head-and-shoulders pattern. This chart setup is characterized by three distinct troughs: a deeper central low (the head) flanked by two higher lows (the shoulders).

The neckline resistance, connecting the interim highs between the shoulders and head, is at $2.2, coinciding with the 50-and-100-day EMA slope. A successful breakout above this neckline could confirm the pattern and push the price another 12% to challenge the wedge resistance at $2.5.

Since mid-January 2025, the two trendlines as dynamic resistance and support have maintained a steady correction trend, and therefore, the potential breakout will signal a change in market dynamics.