XRP Bollinger Bandwidth Signals Imminent Breakout

XRP investors are closely monitoring chart patterns as the Bollinger Bandwidth indicator suggests a potential surge in the near term. This popular analysis tool is flashing a signal that has historically preceded major market moves for XRP.

The cryptocurrency has experienced a period of consolidation since hitting a high of $3.4 in January 2025. Market observers believe it may be poised for an upward push, echoing the impressive rally seen in late 2024. Among those highlighting the bullish signal is noted analyst Mr. Xoom, who recently drew attention to developments in XRP’s Bollinger Bandwidth on the daily chart.

According to his analysis, the Bollinger Bandwidth—for those unfamiliar—is an indicator used to gauge market volatility by measuring the distance between the upper and lower Bollinger Bands. A continuous narrowing in the bandwidth suggests that the asset is trading within a tightly defined price range, often signaling mounting market pressure ahead of a breakout.

Mr. Xoom notes that XRP’s daily Bollinger Bandwidth has continued to shrink over the past several months. Earlier data showed the metric at 11.53, which has since dropped further to 10.59. This is a significant drop-off from the high point of 147.33 reached during the bullish swing in November 2024. That uptrend propelled XRP past the $1, $2, and $3 levels over a short span.

Historically, similar contractions in XRP’s Bollinger Bandwidth have preceded sharp moves. Back in October 2024, a major contraction dropped the Bandwidth down to 5.81 while XRP hovered around $0.5. This tightening of volatility laid the groundwork for the explosive rally that unfolded in November when XRP skyrocketed to $3.4 by January 2025—representing a staggering gain of 580% over just three months.

The current levels echo similar market conditions. Observers believe XRP’s narrowing bandwidth is another sign that a large move is brewing. The volatility drop alone does not dictate direction, as breakouts can occur upward or downward. But Mr. Xoom leans toward a bullish scenario, citing key technical formations.

He references a symmetrical triangle setup on XRP’s long-term chart as a supportive factor. This structure has been in play since XRP’s retreat from its January highs. Currently, XRP is testing the upper bound of that triangle. If volatility returns, the odds of a breakout to the upside increase.

In addition, the preceding rally forms a towering flagpole, and many analysts interpret the current consolidation as a bull flag—a continuation pattern that often signals further movement upward. Even though the current period of sideway motion may be stretching beyond the traditional definition of a bull flag, the bullish momentum of the prior trend keeps optimism alive.

Should a breakout materialize under these conditions, upside projections estimate that XRP could rise to as high as $4.7. This target is based on the size of the initial run-up of $2.4 (the flagpole) and a potential breakout point of $2.3. From XRP’s current trading level at $2.24, that would equate to a 109% increase.

Related: Expert Advice: Sell XRP If You’re Confused

As the Bollinger Bandwidth continues to slump and chart patterns align, market participants are preparing for a decisive move. Whether that materializes in the coming days or weeks, XRP’s chart is shaping up to be one of the most closely watched in the crypto space.