XRP is now showing signs of recovery following the latest pullback. As a result, some analysts suggest the recent drop was a bear trap.

For context, after soaring to a local top above $3.66 two weeks back, as it rode on the broader market’s explosive rally, XRP faced intense selling pressure. Consequently, it dropped to retest the $3 psychological mark following a massive 10.34% intraday collapse on July 23.

Investors Caught in a Bear Trap

Now, with the market showing signs of a recovery, market watcher Armando Pantoja believes the recent pullback was a bear trap. For context, a bear trap happens when an asset’s price appears to be dropping further, tricking investors into selling, but then it quickly reverses and moves upward.

Notably, following the 10.34% slump on July 23, XRP saw a subsequent 1.19% drop the next day amid sustained panic selling. For instance, market expert Dom confirmed that Upbit saw about 75 million XRP in sell volume over 24 hours, contributing largely to the price crash. According to Dom, these trades were the major factor behind XRP’s collapse.

However, after XRP reached a low of $2.9, the price recovered sharply, with XRP now trading for $3.27 at press time. Now that the market appears to be heading toward previous highs, Pantoja believes the July 23 crash was merely a bear trap. He suggested it was the largest bear trap in XRP’s history.

Interestingly, during this collapse, several market pundits advised investors against selling off their XRP. For instance, well-known author Steve Shultz insisted that investors do not sell off their tokens during the crash, citing a previous experience in which he lost a potential profit of $2 million in Bitcoin.

XRP Still in a Bullish Trend

Since these comments, XRP has regained over 10% of its value, nearly reclaiming the previous top. Data from XRP’s daily chart shows that the Directional Movement Index (DMI) is flashing positive signs. Specifically, while the ADX has dropped in recent times, it remains above 47, with the +DI (33) overshadowing the -DI (14.4).

Moreover, the Relative Strength Index (RSI) remains at the 64 mark, indicating sustained bullishness despite not yet being in an overbought zone. Notably, these figures indicate that XRP is still in an uptrend, although the momentum has cooled. 

In addition, Dom noted during the latest price upsurge that the spot-perp premium, which indicates whether the market is overheated, rose to dangerously high levels. However, the drop that followed helped reset the premium, creating a healthier environment for the next leg up. 

The spot‑perp premium is a potent signal

When it spiked on $XRP near its ATH, it warned that leverage was overstretched and a purge was likely 🤝

After the flush, the premium has briefly turned positive again

Check the quoted post to add it to your charts https://t.co/DfGbinmpYy pic.twitter.com/KhwNppYIGz

— Dom (@traderview2) July 24, 2025

A notable XRP market commentator has suggested that XRP will rise to a price level where most investors would only be able to afford “dust of the token.”

This commentary came from Xena, a community pundit that has continued to express her confidence in XRP’s price prospect. Notably, XRP recently spiked above the $3 mark after attempting to breach the level for several months. On the back of this feat, Xena called attention to how much XRP $1,000 could get.

$1,000 Can Only Get 315 XRP Now

The pundit pointed out that with XRP trading for $3, an investor who commits $1,000 would only amass 330 XRP. Specifically, XRP trades for $3.17 as of press time. At this price, a market participant would only procure 315 XRP with $1,000, indicating that the figure has reduced since Xena’s comments.

Notably, Xena suggests this trend could continue. According to her, at the $3 price level, XRP is becoming less affordable to the everyday investor. Community commentators like Edoardo Farina also identified this pattern when XRP traded for $2. Last month, Farina insisted that XRP was already pricing out retail investors.

Meanwhile, in a recent report, The Crypto Basic found that procuring just 2,400 XRP to enter the top 10 of the XRP Rich List is now out of reach for the average salary earner in the U.S. and the U.K. unless they save for multiple months. 

However, this was not the case just a year ago. Moreover, a $1,000 investment would have procured much more tokens, as Xena implied. For context, in July 2024, XRP traded for around $0.48. At this price, an investor could amass around 2,083 XRP with $1,000. Today, this figure has reduced to 315 XRP.

Most People Would Only be Able to Afford “Dust”

Xena believes the figure will continue dropping, essentially predicting XRP price to see consistent gains. According to her, at a $5 price, which represents a mere 57% rise from the current price, most investors would already find it “dramatically too high” to buy XRP. 

She suggested that as a result of this, these investors would only settle for “dust of the token,” referring to fractional ownership. Notably, this is the trend that occurred with Bitcoin. A decade ago, in July 2014, $1,000 could buy 4 BTC as Bitcoin traded around $250. Now, the $1,000 would only be able to afford 0.008 BTC, essentially a fraction or “dust.”

Xena sees this happening with XRP. She noted that unless one is wealthy and can afford to commit higher amounts toward investments, XRP is heading toward a level where investors will see it as a pricey asset especially if they’re aiming to amass up to 1,000 tokens.