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In the last 24 hours, XRP has dropped from a daily peak of $1.44 to $1.37 as bearish pressure continues to linger on the broader crypto market. However, renowned on-chain analyst Ali Martinez thinks XRP might be close to a major price breakout based on the Bollinger Bands squeeze of the asset’s charts.
XRP’s Bollinger Bands squeeze signals potential breakout
As per the chart shared by Ali, XRP's Bollinger Bands are contracting around $1.38. This classic squeeze pattern suggests that the price is consolidating in a narrow range, and a big move might happen soon.
Notably, when the Bollinger Bands squeeze this close, it signals that XRP’s price could move as volatility is likely to increase. Such a squeeze usually precedes a strong market move for an asset in the crypto space.
Market participants are anticipating an upward movement for XRP. As of this writing, XRP exchanges hands at $1.37, which represents a 2.05% decline in the last 24 hours. Despite the price dip, trading volume has climbed by 14.22% to $2.89 billion. This suggests increased accumulation on the part of investors amid exchange outflows.
XRP's decline mirrored Bitcoin's drop of over 2.2% as the broader market fell by 1.92%. A plunge in oil prices triggered this as geopolitical tensions eased a little. If Bitcoin is able to hold above $69,000, altcoins find stability and halt their downward movements.
Meanwhile, weak institutional interest in XRP has also affected the coin. The U.S. spot XRP exchange-traded fund (ETF) recorded $3.9 million in outflows within the last 48 hours. This has increased the selling pressure for XRP.
With XRP’s Relative Strength Index (RSI) at 45.96, the asset remains in neutral territory and is not yet oversold. The effect of the Bollinger Bands squeeze may take some time to materialize in the price outlook.
Can XRP reclaim $2?
Nonetheless, technical indicators signal that XRP could break out and reclaim $2 in the coming days.
As U.Today reported, XRP formed a golden cross on its hourly chart on the second day of the trading week. Investors are hoping that the coin could leverage this to rebound toward the $2 level in a positive recovery if market conditions are right.
Meanwhile, activities on the XRP Ledger recently witnessed a surge as payment volume climbed to 743 million XRP. The development suggests that sentiment might soon begin to shift for XRP.
Dan Burgin
Vladislav Sopov
