XRP is heading back to a familiar spot, hitting the lower Bollinger Band for the second time in less than two weeks. This is not just a visual pattern; in John Bollinger's own framework, a second touch at the lower band often acts as a test.
It is not technically a buy signal on its own, but he has described it as part of a process. It could be a setup for a "W-bottom," or it could be a sign that a trend is weakening instead of continuing.
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In this case,XRP has not broken down. After dropping back down to $2.07, the price held steady there and is now just above it — slow and steady, but not much going on. That is usually the key thing to look for during this kind of compression.
The bands are looking more and more narrow. Volatility is drying up. When that happens and the price is close to the lower limit, the market is basically preparing for the next move.
Bollinger says that when the price hits the lower band and stays there, the big question is whether it will start moving back up toward the middle band. If it does not do that — and keeps leaning into the edge — then the underlying pressure stays to the downside.
So far,XRP has not convincingly reclaimed that mid-line at $2.27, so that outcome is still up in the air.
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If it can hold steady at around $2.07, it might eventually become part of a reversal pattern. But if it does not, and XRP starts closing below the band with volume, then the move toward $1.95 could really happen.
This is not a breakout yet. It is the setup before the breakout.Bollinger Band theory does not tell you which direction — it tells you when there is enough pressure to cause a change. Right now, XRP is right where compression and decision meet.
