Analyst Sends Critical Warning to XRP Holders: Largest Bear Trap In History

Crypto analyst ChartNerd (@ChartNerd) suggested in a recent post that XRP’s recent price behavior may not be what it seems. He warned that the market could be witnessing one of the largest bear traps in XRP’s history.

The comment comes at a time when many traders remain cautious after weeks of uneven movement and failed breakdown attempts.

At first glance, XRP’s recent performance looks uninspiring. That surface-level view encouraged short positions and defensive positioning. However, market structure beneath the price tells a more complex story.

$XRP: This might just be playing out to be one of the largest bear traps in $XRP's history.

— 🇬🇧 ChartNerd 📊 (@ChartNerdTA) December 19, 2025

What a Bear Trap Really Means

A bear trap occurs when price action convinces traders that a breakdown is underway, only for the asset to reverse higher. Sellers enter aggressively, and liquidity builds. Once selling pressure exhausts itself, the price snaps back upward, and forces bears to exit at a loss.

In strong or transitioning markets, bear traps often appear near key support zones. They rely on fear, not fundamentals. They also tend to form when the price refuses to follow through after breaking lower.

The digital asset experienced a notable bear trap in July, when a fakeout pushed many investors out. The asset hit its peak of $3.65 before a swift decline pulled it below $3. However, it did not stay down for long, quickly regaining the $3 level after weak investors had sold their tokens.

ChartNerd’s comment suggests a repeat of this exact dynamic. XRP has tested downside levels multiple times without sustained continuation. Each dip attracted buyers faster than expected, causing XRP to recover quickly. That pattern of flash crashes and swift recoveries weakens the bearish case.

What to Expect as 2026 Approaches

XRP has traded with high volatility in December, but has shown limited downside follow-through. Its price moved below prior support levels briefly, then reclaimed them. If ChartNerd is right, the current market setup could be the largest bear trap in the asset’s history.

The next phase typically involves rapid repricing. In this phase, XRP’s price will move fast as shorts cover and sidelined capital re-enters. That shift can catch the market off guard. Experts have high expectations for XRP in 2026, and this bear trap could kickstart a massive run during the new year.