XRP has entered a phase of tightening volatility, as the Bollinger Bands squeezing on the 12-hour chart indicates.
Technical analyst Ali Martinez highlighted this observation in a tweet. Historically, such contractions in price range often signal that a major move is imminent. Martinez suggested that this time would likely be no different.
XRP Tightening Bollinger Bands and What Could Follow
Notably, after a strong rally that pushed XRP above $3.30 in mid-January, the price has since stabilized, hovering near the middle band. The initial surge saw a series of bullish candlesticks, but resistance near $3.30 led to a period of sideways movements.
During this time, XRP revisited lows around $2.70 but has since recovered, settling in the $3 range at press time. Now, with the Bollinger Bands narrowing, traders are bracing for a breakout in either direction.
If XRP breaches the upper band, it could trigger another leg up, possibly revisiting its all-time high at $3.84—an event the XRP community has eagerly awaited for seven years. Conversely, a drop below the lower band could open the door to a deeper retracement.
Notably, Martinez offered no clear indication of whether XRP would experience a breakout to new all-time highs or a breakdown toward December’s lows. Market participants commenting on his post repeatedly sought his opinion on the next market direction.
XRP Promising Outlook
Meanwhile, in a previous commentary, Martinez said buying XRP around the $3 mark was “a good idea.” However, he acknowledged that purchasing during the dip at $2.40 would have been a better move, as holders would already be up 24%.
Additionally, he revealed that he had already taken a long position in XRP at $2.40, targeting a price of $10. Martinez also noted that while XRP may revisit new lows in the $2 range, he would seize the opportunity to add to his position.
He emphasized that XRP is a long-term trade and urged holders to ignore short-term fluctuations.
Previous Case: XRP Pumped After Tightening Bollinger Bands
Further, market watcher Steph previously identified a tightening of XRP’s 12-hour Bollinger Bands. In the analysis, Steph pointed out that a similar event preceded a 490% rally in XRP, which saw the price rise from $0.49 to $2.90 in November to December 2024.
At the time of Steph’s disclosure, XRP was trading at $2.26, consolidating after the explosive rally. While Steph speculated that another breakout from the tightened bands could drive XRP by a similar magnitude as before, this did not happen.
Instead, XRP’s price improved from $2.26 to near $3.50, registering a gain of about 50%. With market anticipation building, all eyes are on XRP to see where the next move will take it.