XRP has posted an impressive recovery over the past week, climbing more than 30% from monthly lows, but the rally may be losing steam. On April 14, the token reached a high of $2.25, driven by renewed investor optimism following political and legal developments. However, analysts now warn that the price is facing stiff resistance, raising concerns about a potential bull trap—a false signal that a declining trend has reversed.
Legal, Political Boost Fuels Short-Term Gains
The rally began amid speculation that former President Donald Trump could roll back tariffs impacting global markets. His recent pause on reciprocal tariffs affecting over 70 countries, including an exemption for smartphones, was seen as a bullish macro signal for risk assets like cryptocurrencies.
Adding to the momentum, the SEC and Ripple Labs jointly filed to suspend appeals in their long-running legal case, signaling a path toward settlement after years of regulatory friction. The SEC’s prior lawsuit, alleging XRP was an unregistered security, had long weighed on the token’s price. The market responded positively to signs of finality and reduced legal overhang.
Ripple’s Hidden Road Acquisition Adds to Narrative
Another bullish catalyst was Ripple’s recent $1.25 billion acquisition of Hidden Road, a global prime brokerage platform that processes over $10 billion in daily volume. Executives at Ripple hinted that a portion of this volume may be transferred onto the XRP Ledger, potentially driving adoption and transaction activity.
Despite these developments, technical analysts are cautious.
Resistance and Declining Momentum Raise Red Flags
The current price action indicates XRP is struggling to break past resistance near $2.25, a key psychological and technical level. While the broader sentiment remains cautiously optimistic, volume is tapering off, and buyers appear less aggressive at these higher levels.
Analysts warn that if XRP fails to establish support above $2.10, the pullback could accelerate, confirming a classic bull trap pattern where traders are lured in by a short-term rally only to face sharp declines.
Outlook: Watch for Confirmation Signals
To sustain the upward trend, XRP would need to break and hold above $2.25 with strong volume, while maintaining momentum in both on-chain metrics and broader crypto sentiment. Failure to do so could lead to renewed selling pressure and test lower support levels around $1.85–$2.00.
