XRP has surged more than 30% in the past week, recovering from monthly lows to trade near $2.25 as of Sunday, April 14. The rally comes on the back of renewed optimism around Ripple’s regulatory standing, geopolitical easing, and a major acquisition. However, analysts warn that the price is now encountering significant resistance, raising concerns that the bounce could be a bull trap.
Multiple Tailwinds Drive XRP Recovery
The rebound in XRP followed several favorable developments. First, hopes grew that former President Donald Trump would soften his global tariff stance, after he announced exemptions on smartphones and paused several reciprocal tariffs affecting over 70 countries. These policy shifts boosted broader market sentiment and risk assets, including cryptocurrencies.
Meanwhile, Ripple and the U.S. Securities and Exchange Commission (SEC) filed to suspend pending appeals and explore a negotiated resolution—a major shift following the SEC’s recent decision to drop its long-running lawsuit against Ripple Labs. The move has reduced legal uncertainty surrounding XRP, which has long been seen as a regulatory risk factor.
Additionally, Ripple’s $1.25 billion acquisition of Hidden Road, a digital asset prime brokerage, contributed to the bullish narrative. Ripple executives hinted that they could transfer some of Hidden Road’s $10 billion in daily volume to the XRP Ledger, potentially increasing on-chain activity and utility.
Key Resistance May Signal Bull Trap
Despite the strong rally, XRP is now testing critical resistance levels, which could determine whether the recovery holds or stalls. Market analysts caution that the current price action could lure in overly optimistic buyers, only to reverse if momentum fails to push past resistance.
In technical terms, XRP’s climb may be overextended, with short-term indicators flashing warnings of reduced buying strength. A rejection at these levels could trap bulls who entered late into the rally, potentially leading to a sharp correction.
