- XRP’s 4-hour Bollinger Bands are tightening, indicating a major price move could be near.
- The current squeeze mirrors patterns seen before past rallies, with bandwidth at its lowest since October 2024.
- XRP is hovering near $2.12, testing key support at $2.07 while facing resistance from overhead EMAs.
- A break below $1.80 could confirm a bearish trend, while a move above $2.35 may signal short-term recovery.
XRP is showing signs of a major move brewing as its Bollinger Bands tighten significantly on the 4-hour chart, a classic signal of incoming volatility. According to crypto analyst Ali Martinez, who shared the update on X, this technical setup could mark the start of a powerful price breakout or breakdown for XRP in the days ahead.
XRP Bollinger Bands Hint at Explosive Move
Bollinger Bands are a widely used indicator that measures market volatility by plotting two standard deviations from a 20-period moving average. When these bands squeeze together, it often means that a strong price movement is near.
Martinez pointed out that XRP’s current Bollinger Bandwidth is at its lowest level since October 2024, a period that preceded sharp price action. He also noted that a similar squeeze on the 12-hour chart previously led to the token stabilizing at $3 after touching highs of $3.30—highlighting the historical reliability of this signal.
Bulls and Bears Face Off
After a breakout from the $0.38 range, XRP soared to a local peak of $3.40 before entering a multi-week correction. At press time, the asset is trading around $2.12, testing the lower Bollinger Band and sitting below key exponential moving averages (EMAs). These EMAs now act as overhead resistance and could limit any immediate upside momentum.
If the token holds the $2.07 support zone, it could bounce back toward the $2.35 level, a short-term resistance that might help bulls regain control. However, a break below this level could send the token tumbling toward $1.60, a crucial demand zone from previous cycles.
XRP is also facing a key retest of its long-standing downtrend resistance on the daily chart. If the token fails to break above this range within the next couple of weeks, traders may be in for more consolidation or downside pressure.
Analysts are particularly watching the $1.80 support level. A decisive breakdown below this threshold could mark a bearish continuation, potentially invalidating bullish scenarios for the medium term. Meanwhile, a move above $2.35 could provide short-term momentum, with the $2.60 mark being the next target for bulls looking to re-establish dominance.
With XRP and even Bitcoin both showing signs of compressed, spring-like price action, the crypto market could be on the edge of a broader volatility surge. Traders are now closely monitoring price movements and key support/resistance levels as XRP prepares for what could be a significant shift in trajectory.
Whether it’s a breakout to the upside or another leg down, one thing is clear: the squeeze is on, and XRP is about to move.
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