Saad Ullah
XRP, the fourth-largest crypto by market cap, is getting ready for what could be a big move. The Bollinger Bands on its daily chart are tightening up, which often happens before major price swings. Right now, XRP is trading at $2.15, up 0.9% in the last 24 hours.
The middle Bollinger Band sits at $2.19, acting like a dividing line between bullish and bearish territory. XRP has been bouncing around this level for the past week, except for one quick jump to $2.32 before getting pushed back down.
XRP (Ripple) Technical Setup Points to Volatility Squeeze
When Bollinger Bands tighten like this, it usually means the wild price swings we've seen lately are about to calm down. But here's the thing - this calm period often comes right before a bigger move in either direction.
The lower band at $2.08 has been acting like a safety net for XRP. Every time the price gets close to that level, buyers step in and push it back up. That's a good sign that there's still demand at lower prices.
Trading volume has dropped by 22.43% to $2.47 billion, which isn't great for sustaining a rally. But if volume picks up while these bands keep squeezing, XRP could easily test $2.50 again.
XRP (Ripple) Faces Key Resistance at $2.23
The big test for XRP bulls is the $2.23 level. This price has rejected XRP multiple times over the past month, so breaking through it won't be easy. If XRP can't get past this hurdle, it might slide back down to the $2.10 support area.
What's working in XRP's favor is that about 79% of holders are sitting pretty with profits. They bought XRP below today's price, which means they're less likely to panic sell if things get bumpy. This could help stabilize the price as the Bollinger Bands do their thing.
The setup looks interesting - XRP has strong support below, most holders are in profit, and the technical indicators are pointing to a potential breakout. Whether that breakout goes up or down depends on how well XRP handles that $2.23 resistance and whether trading volume comes back to life.
Saad Ullah
