XRP Price Teases ‘Bear Trap’ After June Drop to $1.25
XRP fell to $1.25, erasing gains since February, and testing key support at the 50-month EMA and macro trendline. Analysts see a potential 'bear trap' if price reclaims those levels, while others warn of further downside to $0.70-$0.90. Historical data shows June is typically weak for XRP, reinforcing bearish sentiment.
Quick Take
XRP dropped to $1.25, breaking below $1.27 support
Analysts suggest 'bear trap' if 50-month EMA reclaimed
Bearish targets include $0.70-$0.90 and $0.94-$1.11
June historically negative for XRP, averaging -5% returns
Market Impact Analysis
BearishXRP's break below key support and historical June weakness indicate further downside risk, though a bear trap reversal remains a possibility.
Speculation Analysis
Key Takeaways
- XRP crashed to $1.25, wiping out gains since February and breaking below the $1.27 support.
- The token is testing the 50-month EMA and a macro trendline, with a potential bear trap if reclaimed.
- Bearish targets point to $0.70–$0.90 or $0.94–$1.11 if support fails.
- June has averaged -5% returns for XRP historically, with double-digit losses in past bear cycles.
What Happened
XRP fell to $1.25 on Tuesday, extending a market-wide sell-off that erased all gains since early February. The drop pushed the token below a crucial support zone between $1.26 and $1.30, testing the 50-month exponential moving average (EMA) and a multi-year ascending trendline that has held since 2017. This breakdown has intensified bearish sentiment, with analysts eyeing further downside, though some see a potential "bear trap" if XRP quickly reclaims these levels.
The Numbers
Trading at $1.25, XRP has shed over 20% from recent highs. The $1.26–$1.30 band now serves as overhead resistance. If bulls fail to defend this area, downside targets extend to $0.70–$0.90, with intermediary support at $0.94–$1.11. Historical data paints a grim picture: XRP’s average June return since 2014 is -5%, with 2018 and 2022 posting losses of -23.8% and -21.5%, respectively.
Why It Happened
The drop mirrors a broader market downturn, with risk assets selling off amid macroeconomic uncertainty. XRP’s technical structure weakened after closing May in the red, compounding seasonal headwinds—June has been historically weak for the asset. The breach of multiple support levels triggered stop-losses and bearish positioning, accelerating the decline.
What to Watch Next
- Reclaim of the 50-month EMA and trendline—if successful, the bear trap scenario could spark a sharp reversal.
- Defense of the $1.00 psychological level; a break below could open the door to sub-$1.00 targets.
- July recovery potential if historical patterns repeat, as XRP has often rebounded after weak Junes.
This article is for informational purposes only and does not constitute financial advice.
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