Compass Investments

– XRP price is ready for a big move: find out when and how Technical analysis of XRP shows market volatility after a period of consolidation

On the daily chart, XRP is showing signs of a big price move coming soon as the Bollinger Bands are narrowing. Signs that this is about to happen. Historically, a contraction is a signal of low volatility preceded by a sharp breakout either up or down.

Bollinger Bands measure price volatility by drawing two standard deviation lines around a moving average, which is an important indicator of future volatility.

_BREAK The chart shows that the Bollinger Bands are narrowing, which usually results in a decrease in the width of the Bollinger Bands. This means that XRP is in a consolidation phase. Previous contractions were preceded by serious price fluctuations, so market participants are preparing for a possible explosion of XRP price.

Over the last 24 hours, the price of XRP has fallen by 10% . CoinMarketCap data shows the same downward trend to $2.80. However, the price is trying to find support at $2.98.

investors are aggressively recovering, as evidenced by a sharp increase in trading volume (388.70% ) in anticipation of the expected breakout.

Despite the fall, the Market Capitalization of XRP is still large at $171.81 billion, indicating the continued interest of institutional investors in this asset. In addition, increasing selling pressure, as evidenced by the red market volume, suggests that short-term downside risks may persist.

Technical and market analysis: will XRP rebound?

On Binance, the XRP/USDT pair is traded daily on the two-hour timeframe. Let’s take a look at the XRP chart. The price movement shows a clear consolidation in the range shown in blue, with several breakout attempts followed by a quick drop and then a strong rise again

In other words, XRP seems to be testing key support and resistance levels before making a decision. Related. The recent series of green candles suggests that the bulls are now dominating the XRP market.

a closer look at the volume delta shows that there is a large amount of buying and selling.XRP has been under heavy selling pressure lately, and the volume delta shows that there are far more sellers than buyers This indicates that sellers far outnumber buyers, causing the price to fall. When the price bounces back, the volume change is clearly visible, which indicates that buying is returning.

However, the short-term outlook is sideways. The overall trend remains bullish, and XRP has risen to the current sideways phase. However, if sellers drive the price below $2.80, it could lead to a stronger decline.

Conversely, a break above $3.10 could open the way for further gains and a test of $3.50 (or higher).

Bollinger Bands have historically caused XRP to move. In past cycles, prices have soared 20-30% on the day of this compression. According to history, XRP has a chance to rise to USD 3.50 or USD 4.00 as long as the uptrend continues.