XRP Bollinger Bands bulls desire $2.55
XRP (XRP) price rose 3% to trade above $1.40 on Friday as several technical and on-chain indicators pointed to a “significant” rally to the upside.
Main Receptors:
XRP's Bollinger Bands indicator is now looking at the potential for significant price loss.
XRP's falling wedge pattern is targeting $2.55.
Declining exchange rates and constant exits indicate XRP accumulation.
XRP Bollinger Bands indicate a “significant” divergence
Bollinger Bands, a technical indicator that traders use to assess price volatility and volatility within a certain range, has reached its tightest level in eight months, indicating that volatility is expected soon.
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“Daily XRP Bollinger Bands have slipped to their tightest levels since July 2025,” analyst The Crypto Basics said in an X post on Thursday.
The XRP/USD pair rose nearly 60% to a multi-year high of $3.66 in July 2025, after breaking above the upper boundary of the Bollinger Bands.
“Tight Bollinger Bands usually indicate low volatility, and the ensuing breakout can lead to an explosive run,” The Crypto Basic added.
Another analyst called it a preparation for a “major upheaval.”
XRP price “continues to strengthen in a balanced triangle structure with Bollinger Bands tightening and RSI stabilizing,” said XRP Update Associate Analyst.
“This volatility spike indicates that the market is preparing for a major crash.”
XRP analyst Arthur said the daily candlestick close above $1.50 “confirms momentum” as bowling bands narrow.
XRP is in a falling wedge pattern at $2.55.
XRP's price action is forming a falling wedge pattern on the weekly chart, a structure associated with a bullish reversal after a long downtrend.
Since July 2025, the price has been squeezed between two downward trends, with the lower bound now acting as key support near the $1.30 psychological level.
Meanwhile, the Relative Strength Index (RSI), on the weekly chart, is rebounding from oversold territory, suggesting that selling momentum is fading.
Historically, similar RSI conditions have preceded strong advances in XRP. For example, XRP rallied as much as 85 percent between July and September 2022 after RSI recovered from oversold conditions.
A confirmed break above the wedge's upper trend line at $2.55, 78.5% above the current price, would pave the way for a run to the top chart pattern target.
According to Cointelegraph, bulls need to break and sustain XRP price above the $1.73-$2 supply zone to signal a long-term trend reversal.
A drop in supply on exchanges will push XRP higher.
The supply of XRP on exchanges, or the total amount of coins held on exchange addresses, continues to fall, reflecting accumulation and long-term investor confidence.
The XRP exchange rate seen at the end of May 2021 dropped to 12.8 billion on Friday.
Shrinking balance means fewer XRP tokens are available for sale, reducing sell-side pressure.
Such flows often indicate strong hoarding by large holders who move funds into cold storage, reducing immediate sell-side pressure and increasing the chances of XRP's short-term rebound.
However, XRP's recovery could be delayed following redemptions from XRP exchange-traded funds (ETFs), which recorded five consecutive days of outflows, totaling $50.8 million.
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