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As the prices of cryptocurrencies are on a rise again, all eyes are on XRP - one of the biggest and hottest altcoins this cycle. XRP is currently going through a key technical moment, as its price is testing an important level on the weekly chart - the middle band of the Bollinger Bands indicator, which is sitting at $2.42.
This level has not been broken yet, despite an almost 10% gain last week, and it is starting to act like a barrier that traders should be keeping an eye on.
For those not familiar, the Bollinger Bands are a popular tool for measuring volatility and price momentum, and the middle curve there reflects the average trend. Right now, the moment feels like a kind of a checkpoint that could show if the recent upward movement is really strong or not, sort of a stress test.
If you look at the weekly chart, you will see that XRP has been stuck below this band since early March. Every time the price has tried to break through, it has been met with selling pressure, which has kept the market in a sideways range.
This suggests that while there is some buying interest, there has not been a strong enough push to change the overall direction.
At the same time, the bands themselves are starting to tighten a bit, which usually signals that a bigger move could be coming - though it is not clear which way.
If XRP closes above $2.4209 next week, it could mean more gains, possibly hitting the upper band around $3.02. But if it gets rejected again, the price could head back down to the lower band near $1.82.
Vladislav Sopov