$1.80 or $1.00? Analyst Maps Out XRP’s Next Big Move

XRP could be on the verge of significant volatility. The Ripple-linked cryptocurrency has formed a classic technical signal that could potentially indicate a major price expansion.  

The token is currently experiencing its tightest Bollinger Band squeeze on the 3-day chart in over a year. 

In technical analysis, Bollinger Bands measure market volatility. When these bands compress tightly together, it typically precedes a violent breakout as the market releases built-up pressure.

The “no-trade zone”

The analyst believes that the current market structure is essentially a “no-trade zone” despite anticipating a massive move.  

Currently, XRP is trapped in a narrow consolidation range. A clean three-day candlestick close outside of the defined $1.29 to $1.50 boundary would be needed to confirm a new trend. 

A close above the $1.50 resistance level would be great news for the bulls. In such a case, they could start aiming for the $1.80 level.

Conversely, a close below the $1.29 would open the door for a deeper market correction, potentially driving XRP back down to test the psychological support level of $1.00.

3-day chart structure

In February, XRP experienced a massive capitulation candle. The price plummeted from the $1.70 region, driving a massive wick all the way down toward the $1.01 to $1.13 support zone. 

During this violent sell-off, the Bollinger Bands expanded drastically, visually representing the extreme market volatility.

Following the February crash, the chart shows XRP entering a prolonged period of stagnation. 

Throughout March and April, the price action flattened, characterized by a series of small, indecisive candlesticks. 

The upper and lower Bollinger Bands have pinched together into a tight, horizontal channel.

The asset has completely run out of room to consolidate within this technical structure. A break of either the upper or lower boundary is required to resolve the month-long squeeze.