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Crypto XRP: Bollinger Bands Signal A Shock!

18h05 ▪ 3 min read ▪ by Evans S.
Getting informed Altcoins

The cryptocurrency XRP is about to wake up from its slumber. An extreme tightening of the Bollinger Bands warns analysts: a volatility explosion is brewing. The question remains which direction it will take.

An illustration of a powerful humanoid with the XRP crypto logo engraved on its torso kneels on the ground.

In brief

  • The Bollinger Bands on XRP are reaching extreme compression, signaling an imminent volatility explosion.
  • Technical indicators lean towards an increase.
  • XRP now moves more independently, driven by its fundamentals and a favorable macro context.

Extreme compression, sign of an imminent storm

The Bollinger Bands, which frame price movements, are tightening on the XRP crypto at a rarely seen level. This phenomenon signals upcoming volatility: the narrower the bands, the higher the probability of a sudden move. Maybe we won’t even have to wait for July to witness a bullish turning point.

On the 4H chart, the bands are now so close that they resemble a compressed spring. Historically, such setups have preceded rises of 30 to 50% on the XRP crypto.

According to analyst Ali Martinez, this situation deserves special attention: “Prepare for a decisive move.”

Technical signals reinforce this bullish scenario: the RSI exits its neutral zone without excess, and volumes are rising again on Asian platforms. Moreover, whales have been accumulating XRP for several weeks.

But nothing is guaranteed. If XRP fails to break the major resistance at $2.50, a correction towards $1.80 is conceivable. In this regard, the Bollinger Bands do not indicate a direction but issue a warning: the standstill is coming to an end.

XRP, between resilience and market independence

Far from its past legal troubles, XRP shows surprising stability. While Bitcoin grabs attention with its rally beyond $87,000, XRP is forging its own path. Its recent high at $2.12 marks a turning point, signaling that investors are cautiously returning to the asset.

Unlike in 2021, XRP no longer blindly follows BTC. It reacts to its own dynamics: Ripple’s partnerships with Asian banks, expansion in African cross-border payments, and above all, an image increasingly decoupled from the SEC disputes.

The macro context also plays in its favor. The dollar (DXY) is at its lowest in three years and markets doubt a rapid tightening by the Fed. This uncertainty benefits cryptos. Where bitcoin has become an institutional asset, XRP retains a flexibility that traders note.

At the crossroads of fundamentals, technicals, and the macroeconomic climate, XRP crystallizes attention. The current calm on its chart is just a prelude. The Bollinger Bands, the quintessential technical indicator, sound the alarm. The rubber band is stretched. The market will hold its breath a little longer… before breaking. Meanwhile, Ethereum is threatened with a crash to $800.

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Evans S. avatar
Evans S.

Fascinated by Bitcoin since 2017, Evariste has continuously researched the subject. While his initial interest was in trading, he now actively seeks to understand all advances centered on cryptocurrencies. As an editor, he strives to consistently deliver high-quality work that reflects the state of the sector as a whole.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.