Big movement on the way? XRP course reaches crucial level

The XRP course (XRP) is again under pressure. For the second time in a short time, the coin touches the underside of the Bollinger bands, a technical signal that often precedes a larger price movement. Although it is not a direct moment of purchase, it can indicate an approaching trend need.

Bollinger bands indicate compression

The Bollinger bands on the daily graph are getting closer. That indicates decreasing volatility and increasing price pressure. In the technical analysis this is usually a sign that the market is preparing for a larger movement. The current situation is typical of a phase of consolidation or “compression”.

The underside of the tire is currently around 2.07 dollars, and the XRP race has since fallen twice. Such repeated tests can indicate an approaching breakthrough – up or down. According to Bollinger, it is especially important how the course responds: does Xrp return to the center of the tire, or will it get stuck at the bottom?

Double Raakmoment-‘W-Bottom’ in the making?

Two recent ranging moments on the lower Bollinger band are clearly visible on the graph. Both times the price lasted at the level of approximately $ 2.07. That can be the start of a so -called W-bottom-Pattern, provided XRP manages to spread towards the center line.

That center is at $ 2.27. As long as XRP does not rise convincingly above that, the technical image remains neutral to light bearish.

Price holds above 2.07 dollars – but the risk remains

The course of XRP is around $ 2.16 at the time of writing, a slight increase in relation to the low point. As long as XRP remains above 2.07 dollars, a recovery to the center of the tire is possible. But if the race still closes with volume below this level, the support area will be shown around $ 1.95. That can be seen in the purple zone at the bottom of the graph.

For the time being there is no question yet. This is the type of phase in which the market is preparing for a choice of direction. The Bollinger Band analysis does not indicate direction, but a warning: there is movement.