TLDR
- XRP is currently trading at $2.13, up 3.23% as a top gainer
- Bollinger Bandwidth indicator is at its lowest level since October 2024, suggesting imminent volatility
- XRP is holding above a critical support level of $1.21 with key resistance at $2.33-$2.46
- The current price movement resembles a “compressed spring” ready to release energy
- Analyst Ali Martinez notes that the squeezing Bollinger Bands signal a major price move could be imminent
XRP is showing signs of an imminent price movement as volatility indicators reach levels not seen since late 2024. The digital asset is currently trading at $2.13, up 3.23% in the last 24 hours, making it one of the top gainers in the crypto market.
The price action for XRP now resembles what traders describe as a “compressed spring,” with market energy building up before a potential release in either direction. This pattern is being closely watched by traders and analysts alike.
Technically speaking, XRP is maintaining position above its critical $1.21 support level, which is considered essential for maintaining a bullish outlook. The token has been in a corrective phase after experiencing a prolonged decline since January 2025.
Volatility Indicators Point to Imminent Movement
A key volatility indicator known as Bollinger Bandwidth has narrowed to its lowest level since October 2024 on the 4-hour chart. Bollinger Bands are volatility bands set at plus two and minus two standard deviations above and below the 20-period moving average of an asset’s market price.
The bandwidth measures the space between these bands as a percentage of the 20-day moving average. When these bands tighten, it often precedes a major price movement.
This pattern mirrors what happened before previous price explosions in the crypto market. Both XRP and Bitcoin experienced similar bandwidth compression before their surges in November-December last year.
Crypto analyst Ali Martinez highlighted this pattern, noting, “The Bollinger Bands are squeezing on the $XRP 4-hour chart, signaling that a major price move could be just around the corner.”
The Bollinger Bands are squeezing on the $XRP 4-hour chart, signaling that a major price move could be just around the corner. pic.twitter.com/Yeu0f71PPG
— Ali (@ali_charts) April 20, 2025
Key Support and Resistance Levels to Watch
Traders are currently watching the $1.82 to $2.22 range as an important demand zone for XRP. The price has previously shown strong reactions within this zone, and another bounce could signal the beginning of a new upward trend.
If upward momentum builds, key resistance levels are positioned near $2.33 and $2.46. Breaking through these levels would be necessary to confirm further recovery and potentially establish a more bullish trend.
The current pullback appears to be corrective rather than the start of a deeper decline, according to market observers. XRP remains in what analysts call a “watch zone,” with potential for improved outlook if the price moves strongly above the $2.22 level in the coming days.
Market Context and External Factors
It’s worth noting that tight Bollinger Bands don’t always indicate an upcoming bullish movement. History shows they can also foreshadow sell-offs, as seen in October 2022 when the bands tightened before a market downturn following the FTX collapse.
Recent hawkish comments from Federal Reserve Chairman Jerome Powell and selling activity by some large holders (often called “whales” in crypto terminology) may favor a downward move.
In the broader market context, Bitcoin has surged past $85,000 but faces resistance, while Ethereum remains stable as traders await an upcoming ETF decision that could spark a rally.
Whether XRP’s compressed spring will trigger bullish volatility or lead to a price decline remains to be seen. For now, traders are watching key technical levels and broader market signals for clues about the direction of the next major move.
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