Ripple’s native token, XRP, is drawing attention again as technical indicators hint at an upcoming shift. Though currently trading around $2.22—well below its all-time high of $3.40 reached in January—the tightening of Bollinger Bands suggests a breakout may be near.
What Are Bollinger Bands Telling Us?
Bollinger Bands, a tool designed by John Bollinger, are used to detect market volatility. When the bands narrow, it often signals a period of low volatility before a potential sharp price move.
XRP has seen this pattern before. At the end of 2024, bands squeezed while XRP hovered near $2.10. Within weeks, it surged, nearly touching its previous all-time high. A similar setup occurred this April, with the token rallying above $2.60 shortly after the bands tightened.
But it’s not a guarantee. In some cases, tightening bands have preceded corrections rather than rallies. Traders are watching closely to see if history will repeat—or surprise.
Other Bullish Signals
According to CoinGlass, exchange netflows for XRP show more coins leaving centralized platforms than entering, indicating that holders are moving assets to self-custody. This typically suggests a lower likelihood of short-term selling pressure.
Meanwhile, on-chain activity supports this bullish sentiment. Active XRP addresses have surged past 1.12 million, a multi-month high. Increased address activity can signal growing user interest or utility in the network.
A Word of Caution
While these signs point to potential bullish momentum, the market remains unpredictable. If the price fails to break resistance or faces a broader crypto market correction, XRP could revisit support levels near $2.00.
Conclusion
XRP is at a technical crossroads. If the patterns play out as they have before, the token could be poised for a significant upward move. For traders, the tightening Bollinger Bands and rising on-chain activity might present a compelling case to watch this asset closely.
However, this article does not constitute investment advice. Always conduct your own research and consult with a financial advisor before making investment decisions.
