Key Highlights:
- XRP price increases by 3.1% as bulls eye a breakout to $5.2.
- Bollinger Bands contracting hints at major price move is imminent.
- XRP nears key resistance with bullish sentiment building.
The XRP price has increased by 3.1% in the last 24 hours to trade at $2.09 amid a market-wide recovery that saw the total crypto valuation grow following a 3.3% jump in the price of Bitcoin.
The XRP charts are indicating potential, and whispers of a massive price surge to $5.2 are making the rounds. But is this just another crypto bro pipe dream, or does XRP really have the juice to moon?
Bollinger Bands Squeezing: A Big Move for XRP Price Incoming?
Prominent crypto analyst Ali has predicted on X (formerly Twitter) that XRP is on the verge of a going on a rally.
His analysis comprised of the famous Bollinger Bands indicator, which he noted were contracting on XRP’s 4-hour chart.
For the uninitiated, Bollinger Bands are a technical indicator that measures volatility. When they tighten up like this, it’s usually a sign that the market is coiling up for a massive breakout—either to the upside or downside.
Looking at the chart, the price of XRP has been consolidating in a tight range between $2.00 and $2.10 for the past few days, following a steep climb from $1.940 earlier in April.
The upper Bollinger Band is trending downward while the lower band is creeping up, creating that squeeze Ali mentioned.
Historically, when XRP’s Bollinger Bands get this tight, it’s often followed by a big move—like the 490% rally from $0.49 to $2.90 between November and December 2024, as noted by market watcher Steph in a January analysis. If history repeats itself, we could be in for a wild ride.
The Road to $5.2: Can XRP Price Pull it Off?
The 3-day timeframe for XRP price chart shows a promising picture for the asset in the coming weeks. The chart plots Fibonacci retracement levels based on a significant price swing at a $0.50 low and high of $3.39.
Currently XRP is very close to the 61.8% Fibonacci retracement level ($2.053), which is often a strong resistance or support zone, depending on the direction of the trend.
The asset broke above the 50% fib level ($1.64) around late 2024 and is now testing the 61.8% level.
A break above this level could signal further upside toward next target the 78.6% level ($2.53) and potentially retest its all-time high at $3.39.
A break above $3.177 could lead to the extended Fibonacci levels, such as 127.2% ($3.974) or 161.8% ($5.022).
XRP is currently trading below the 50-day simple moving average (SMA) which has acted as a dynamic support during price action in 2024. The moving average now acts as a resistance, holding the price of XRP below $2.38.
At the current price of $2.09, XRP is bullish intra-day but is down 2.3% in the last 7 days. Since the asset is trending below the 50-SMA, the market sentiment is neutral to bearish on the weekly, with the Ripple Fear and Greed Index at 52.
If XRP fails to break the 61.8% level ($2.0537), it might pull back to the 50% Fibonacci level ($1.6465), which could act as support. A deeper correction could see XRP revisit the 38.2% level ($1.2393) or even lower.
Ripple Devs Hard at Work Amid Greedy Markets
CoinGlass data shows traders are holding a neutral position on the weekly timeframe, with cumulative leverage longs almost matching shorts ($292.15M vs $268.96M).
Dropping down to the daily timeframe, traders are much more optimistic since there’s about 50% more cumulative leverage longs than corresponding shorts.
This imbalance shows the market sentiment is generally neutral to bullish as traders suspect XRP price may pop any time soon and go a rally.
Meanwhile Ripple developers continue to build, setting up the project for a successful rally when Bitcoin dominance finally starts falling.
XRP came in as the third top project by development activity growth following a 352% surge according to data from Chain Broker.
XRP is at a critical juncture. The Bollinger Bands squeeze, combined with its recent price action, suggests a big move is coming—potentially toward that $5.2 mark if the bulls take control.
But with volatility in the mix, traders need to stay sharp and watch for a breakout above $2.10 or a breakdown below $2.00.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
