XRP is approaching a critical price moment as it tests the $2.42 level on the weekly chart. This price zone aligns with the middle band of the Bollinger Bands, which has acted as a firm resistance since early March.
TradingView said XRP gained close to 10 percent over the past week. Despite this, it has yet to close above $2.42, keeping traders on alert as the level remains unbroken.
Every rally to this mid-band has been met by constant selling pressure, convincing the price to return to its range. Therefore, it has failed to gain enough traction to change the current sideways trend.
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More so, the Bollinger Bands have started to contract, thereby reducing volatility. Previously, such a setup tends to be succeeded by a significant price move; however, the direction of the breakout isn’t revealed.
If bulls can push the price above $2.4209 and close above it this week, then an upside-mentioned target should be the upper band at around $3.02. Such a roll would indicate restored strength and open the door for further gains.
Source: Tradingview
However, another rejection at this level could indicate fading bullish momentum. In that case, XRP may slide back toward the lower band, currently positioned around $1.82, reinforcing the ongoing consolidation.
Market Poised for Decision as Bollinger Bands Compress Further
The steady narrowing of the bands has caught the attention of analysts and traders. A squeeze like this typically sets the stage for a significant move as market pressure builds within a confined range.
While buying activity has increased, it has not been strong enough to force a breakout. Sellers continue to defend the $2.42 zone, adding to the uncertainty in the current market setup.
With the price hovering below a crucial resistance, traders closely monitor the next few candles. A confirmed break or rejection could decide XRP’s short-term direction.
XRP’s price is at a critical tipping point, with $2.42 as the key test for further upside. The market remains in waiting mode as traders anticipate a decisive move in the days ahead.
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