XRP Price Faces Bearish Trap as Sellers Defend Key $1.60 Resistance

XRP is currently stuck in what appears to be a classic bearish trap, with price action failing to regain sustainable momentum after multiple recovery attempts. Despite short-lived bounces, XRP remains firmly below the crucial $1.60 resistance level, a zone that has become both a technical and psychological barrier for traders monitoring the XRP price trend. This inability to reclaim higher ground continues to weigh heavily on market sentiment.

From a technical perspective, XRP is trading below its key moving averages while forming a sequence of lower highs and lower lows. The asset is confined within a well-defined downward channel, signaling that bearish control remains intact. Each attempt at a breakout has been met with renewed selling pressure, reinforcing the prevailing downtrend. Notably, trading volume tends to spike during sell-offs, suggesting that sellers remain aggressive and are quick to capitalize on any upside movement.

Temporary bullish signals have repeatedly appeared, including brief rebounds and oversold momentum readings. These short-term indicators often lure traders into anticipating a reversal, which adds to the bearish trap narrative. However, without strong follow-through buying or a clear shift in market structure, these signals have failed to translate into a meaningful trend change. As a result, XRP continues to be pushed back below resistance zones, strengthening the bearish setup.

That said, a breakout scenario cannot be entirely ruled out. Momentum indicators suggest XRP is hovering near oversold territory, and historically, such conditions can lead to sharp relief rallies once selling pressure begins to fade. If buyers can successfully defend the current support area and drive the price above $1.60 with strong volume, short covering could accelerate a move toward higher resistance levels.

The main challenge remains broader market conditions. For XRP to stage a sustained recovery, significant capital inflows and improved sentiment across the cryptocurrency market will be required. Without renewed strength in Bitcoin and major altcoins, XRP is likely to remain under pressure, with sellers continuing to dominate short-term price action.