XRP is capturing the attention of traders and analysts as it shows signs of a potential price breakout, following a period of heightened market volatility. With the cryptocurrency losing its $3 support level, experts predict that XRP could be on the verge of a sharp price move based on technical patterns and market fundamentals.
Bollinger Bands Signal Imminent Volatility
On the 12-hour chart, XRP has entered a “Bollinger Bands squeeze,” a technical pattern that typically precedes significant price swings. According to crypto analyst Ali Martinez, the upper band is positioned near $3.50, which serves as a critical resistance level. A breach of this level could propel XRP to test the $4 mark. Conversely, the lower band at $2.80 highlights a key support zone, and a break below this level could signal further downside.
Factors Driving XRP’s Outlook
Market sentiment remains optimistic, bolstered by the perceived pro-crypto stance of U.S. President Donald Trump’s administration. Analysts, including MikybullCrypto, suggest XRP could target $8 during this cycle if it sustains an ascending channel and breaks through resistance near $3.20.
Upcoming regulatory developments also add intrigue. The XRP community awaits the SEC’s decision on January 30 regarding the Ripple case, which could significantly impact XRP’s trajectory. Additionally, anticipation is building around a potential XRP-focused ETF and CME Group’s plans to launch XRP futures contracts.
Current Market Performance
XRP is trading at $2.88, reflecting a 7.68% decline in the last 24 hours. Despite the pullback, the token remains above its 50-day and 200-day Simple Moving Averages, suggesting long-term bullish momentum.
Key Levels to Watch
For a sustained recovery, XRP must reclaim the $3 support level and break resistance at $3.50. With volatility increasing and RSI nearing overbought levels, traders should prepare for sharp price movements in either direction.
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