XRP is exhibiting indications of an upcoming volatility surge due to decreasing volatility levels on the daily chart.
Based on recent market activity, there an indication of a breakout as XRP has entered into a period of consolidation, which has also been supported by technical analysis, including the narrowness of the Bollinger Bands and the positive momentum indicators. At press time, the coin is trading at $1.38 with a decline of 2.86% over the past 24 hours.
Bollinger Band Compression Signals Possible Breakout
According to the TradingView data, XRP has been trading laterally through the $1.35 to $1.40 areas, which is also mirrored by the ongoing constriction of the Bollinger Bands. This reduced volatility typically happens prior to a large price movement, as lower volatility is followed by increasing volatility.
The other bullish trend for XRP is that the MACD histogram has turned green, indicating that the previous downward momentum has dissipated and that buyers have begun to regain control. In addition, XRP is currently trading close to the median Bollinger Bands, thus outlining that the median is often a turning point in the trend.
If buyers are able to move above the $1.42 resistance level, the following technical targets are located in the $1.50 and $1.60 price range.
In addition, the upper Bollinger Band should act as a strong pull for a higher momentum breakout, sending the coin to between $1.70 and $1.80 by month’s end if upward momentum accelerates.
Also Read: XRP ETF Shock: Goldman Sachs Holds Massive $153.8M
Analyst Highlights Bollinger Band Squeeze
Ali Charts, a crypto analyst, pointed out that the Bollinger Bands are tightening, signalling that a likely large move is on the horizon. These types of squeezes usually precede significant volatility in both an upward and downward direction, which will be notable as we enter the next few days for it’s price action.
In conclusion, while XRP is trapped in consolidation, due to a lack of any significant momentum patterns showing up in the technical indicators, other indicators are suggesting the market is getting ready to release pressure for a potential breakout soon.
If resistance levels are no longer able to hold, XRP has a potential target range between $1.60 and $1.70 before the end of March. Traders should keep an eye on potential support at approximately $1.30, should we see any downside movement.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: XRP Plunges to $1.38: Key Oversold Levels Signal Major Buying Opportunity
