XRP, the fourth-ranked cryptocurrency, is showing the potential to rebound to higher levels on the crypto market despite volatility. Notably, XRP’s Bollinger Bands are tightening as the lines begin to narrow in a technical shift on the daily chart.
XRP Bollinger Bands signal volatility shift
Notably, the middle Bollinger Band is pegged at $2.19, and this line indicates a midpoint between a bullish and bearish outlook for most investors. XRP’s price has fluctuated around this range in the past seven days, aside from a momentary breakout to $2.32, where it faced rejection.
If the Bollinger Bands tighten more, this could reduce the volatility that XRP has witnessed in the last seven days. XRP traders could anticipate a trend shift in the price of the asset amid this technical twist, as they have in the past.
XRP has generally rebounded well each time the price has tested the lower band, which is currently at $2.08.
As of press time, XRP price was changing hands at $2.15, representing a 0.9% increase in the last 24 hours. The coin has started showing signs of recovery, having exchanged at $2.12 in earlier trading sessions. This development signals that XRP could experience a rally if other market indicators align.
For instance, an uptick in volume from the current 22.43% decline at $2.47 billion could see XRP retest $2.50.
XRP key resistance and volume levels to watch
However, investors need to keep an eye on the $2.23 level, as it is a major resistance level at which XRP has faced rejections several times in the last 30 days. If XRP bulls cannot provide support, the coin’s value could crash toward the $2.10 support.
XRP on-chain metrics indicate that approximately 79% of XRP holders are in profit as they purchased the asset below its current price. This development could prevent massive sell pressure on the coin, which might help it rebound as the Bollinger Bands tighten.
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