XRP Technical Setup: Double Bottom Signals or Market Trap?

XRP Price Action: Bouncing Off Critical Support

XRP is currently trading around $1.85, down 1.01% over the past 24 hours, but the real story lies in the structure forming on the 4-hour chart. The token has recovered sharply from a major support zone that previously triggered a significant rally—the textbook first step in a potential double bottom pattern.

What’s the Double Bottom Setup?

A double bottom occurs when an asset falls to a similar support level twice without breaking through. On XRP’s 4H chart, we’re seeing:

• Price holding firm at a high-volume support zone
• Previous resistance peak acting as a supply barrier
• Momentum indicators beginning to stabilize

Technical Indicators Suggest Early Momentum Shift

The Stochastic RSI has turned upward from oversold territory, which often precedes price recovery. This convergence of price action at key support and positive momentum divergence creates an interesting setup—but confirmation matters more than hope.

The Critical Level Everyone’s Watching

$3.15 is the breakout target. If XRP breaks above this previous resistance, it would validate the double bottom thesis and potentially signal a more sustained uptrend. Failure to reach this level or a retest without continuation could instead confirm another lower high in the bear market narrative.

What Could Go Wrong

In choppy markets, what looks like a double bottom can easily transform into a bear trap. Longs caught at mid-range prices face real liquidation risk if support collapses. The key is waiting for confirmation rather than front-running the pattern.

Bottom Line

XRP’s current setup presents both opportunity and caution. The double bottom pattern has structural merit, but only price action above $3.15 with volume confirmation transforms this from interesting observation to actionable trade setup.