XRP Price Forecast: Ripple Set for Major Volatility Shift

Ripple’s XRP is showing signs of an impending big move, with the XRP price forecast becoming a hot topic among traders. Over the past week, XRP has shown minimal price action—just a minor 0.5% increase—yet technical indicators hint that this quiet phase may end soon.

Bollinger Bands Signal an Imminent Shift

XRP has been trading tightly between $2.04 and $2.18, consolidating near $2.13 according to CoinGecko. However, traders and analysts are paying close attention to the Bollinger Bands—a popular technical analysis tool created by John Bollinger. Ali Martinez, a respected market analyst, noted a squeeze on XRP’s 4-hour chart, potentially indicating a surge in volatility.

Bollinger Bands help detect market volatility and overbought/oversold phases by capturing price movement within bands based on standard deviations. When the bands narrow, it typically suggests a lull in volatility and often precedes a significant directional move—either upward or downward.

This tightening is reminiscent of similar behavior seen in late December when XRP priced around $2.10. Shortly thereafter, XRP made a bullish run and nearly matched its historical peak.

While technicals played a role, it’s important to recognize that XRP’s rally coincided with a broader cryptocurrency market boom—most notably, Bitcoin reaching a record high of nearly $110,000. Market-wide momentum greatly contributed to XRP’s strong performance during that time.

Outlook and Price Predictions

Analysts remain optimistic as multiple influencers await further price acceleration. Crypto commentator Brett recently suggested that XRP is targeting $2.60 as its next key level. Meanwhile, Captain Faibik has set his sights higher, projecting a midterm goal of $5 and urging investors to increase their exposure in light of what he describes as an “explosive” rally on the horizon.

However, beyond the chart patterns, XRP could benefit from macro-level developments in the crypto space. Most notably, Ripple’s prolonged legal battle with the US SEC appears to be approaching a resolution, as recent updates suggest diminishing likelihood of further dramatic impacts on XRP’s price.

Instead, attention has shifted to whether the SEC will greenlight the first spot XRP ETF—a move that could attract increased institutional attention and push valuations higher. Key players such as Grayscale, 21Shares, Bitwise, and Franklin Templeton are among those reportedly vying to bring the product to market. Current odds of approval before the end of 2025, based on data from Polymarket, stand around 76%.

Strategic acquisitions are also playing a vital role. Ripple’s recent $1.2 billion purchase of Hidden Road—a leading prime brokerage firm—has sparked fresh optimism. Market watchers believe the move could substantially reshape XRP’s future trajectory. Many suggest it could be a game-changer for the asset’s long-term performance, potentially fueling a breakout if additional partnerships follow.

Related: $2.3 Trillion Liquidity Shock: Franklin Templeton Says XRP Is Next in Line for Massive Inflows

All eyes are now on XRP’s next move. Whether driven by technical volatility, legal clarity, institutional adoption, or strategic expansion, the next few weeks may define the token’s position in this evolving crypto cycle.