While the crypto market digests the calm after the halving, a technical setup discreetly attracts attention: the XRP/bitcoin pair could shoot up by 30%. Far from a simple bullish scenario, this signal is based on a marked narrowing of the Bollinger bands, often a precursor to sharp movements. For traders, this type of compression is never trivial. It often announces a spike in volatility, in one direction or another. This time, all indicators converge towards a possible rise.
The indicators announce an imminent bullish pressure
The XRP/BTC pair is currently moving in a characteristic compression zone, whose particularity is indicated by the behavior of the Bollinger bands. In fact, the chart shows an XRP around 0.00002292 BTC, while the upper band, defined as a potential resistance level, is at 0.00003079 BTC, which represents a bullish difference of almost 30% compared to bitcoin.
This situation does not go unnoticed. The Bollinger bands have contracted significantly in the XRP/BTC chart. This type of contraction generally heralds an imminent breakout. It is a rare phenomenon, but historically announces sharp movements.
This setup attracts attention for several fundamental technical reasons:
A compression of the Bollinger bands: a very narrow volatility indicator, signaling a likely price explosion in the short term;
The 30% difference between the current price (0.00002292 BTC) and the upper band (0.00003079 BTC), which constitutes the immediate target in case of a breakout;
The recent sideways movement of XRP: 'XRP has lost momentum and is swinging without clear direction over the past sessions,' a phase that in the crypto market 'creates conditions conducive to more marked fluctuations';
An intact momentum and solid supports: the pair shows no signs of structural weakness, reinforcing the likelihood of a bullish breakout.
So many elements that, placed one after another, draw a tense technical scenario, where the slightest push could precipitate a significant movement, in one direction or another.