XRP Suffers a $3 Loss and Bollinger Bands Provide Pessimistic Indications for the Cryptocurrency
XRP Price Dips Below Bollinger Bands Midline: A Healthy Correction or Bearish Signal?
After a strong rally, XRP recently dropped below the midline of the Bollinger Bands, signaling short-term bearish pressure. However, technical analysis suggests this downside move may be a healthy retracement rather than a trend reversal.
XRP's price has slipped out of the upper band zone on the weekly chart, but it is not currently in freefall. The narrowing bands indicate a cooling phase for XRP's price, which could go on longer than bulls would like according to both daily and weekly Bollinger setups.
The price fall has caused XRP to start looking for support, which currently sits near the lower band on the daily time frame, around $2.76. The midline of the Bollinger Bands on the daily chart, around $3.19, had been supporting XRP but is no longer doing so. This represents a potential 6.24% further drop in XRP's price.
If XRP manages to hold the support around $2.76, it could potentially retest the weekly midline, currently around $2.39. This represents a further 20% drop in XRP's price. However, signs of weakening bearish momentum, such as low trading volume and bullish divergence, suggest selling pressure is fading, raising the possibility of a near-term rebound of around 20% to retest or surpass recent highs near $3.60-$3.66.
Holding the critical support around the $2.80–$3.00 range is crucial. If maintained, XRP could resume its upward trajectory toward psychological targets near $3.50–$4.00, fuelled by ongoing ETF speculation, Ripple's favorable legal developments, and broader crypto market momentum. AI-based analysis also forecasts potential new highs later this year if market and regulatory catalysts materialize and key support holds.
In summary, despite the recent drop below the Bollinger Bands midline, XRP’s technical outlook remains cautiously bullish. The current dip looks like a healthy correction within an overall strong uptrend, with critical support holding and bullish signals pointing to a potential price rebound in the near future.
[1] Source: TradingView [2] Source: Cointelegraph [3] Source: CryptoSlate [4] Source: U.Today
- The potential price increase of XRP, a digital asset, could reach new highs later this year, according to AI-based analysis, if market and regulatory catalysts materialize and key support holds.
- XRP's current dip, though below the Bollinger Bands midline, might be a healthy retracement rather than a trend reversal, as suggested by technical analysis.
- In the event XRP manages to hold the support around $2.76, it could potentially retest the weekly midline, currently around $2.39, suggesting a possible 20% increase in its price.
- XRP's price prediction is heavily influenced by a variety of factors such as ongoing ETF speculation, Ripple's favorable legal developments, and broader crypto market momentum.
- Most cryptocurrency analysts are following XRP's price closely, with recent developments indicating either long-term bearish pressure or just a temporary correction, owing to its status as one of the top whale assets in the crypto market, trading on technology-driven platforms like Ethereum and Bitcoin, and being a popular choice for investing in digital finance.
