Short-term traders are concerned about the waning momentum. However, a closer look at the chart reveals that the current price action may actually represent a consolidation phase before the next major move.
Ripple (XRP) Price Forms Bollinger Band Squeeze Due to Decreased Volatility
On the daily chart, Ripple (XRP) has been trading between the support level of approximately $1.32 and the resistance level of $1.46-$1.47 since early February. Prior to this, the asset experienced a nearly five-month downtrend, during which a series of lower highs steadily pushed the price down.
This long-term decline usually transitions into a bottoming phase, where the market tends to stabilize and accumulate liquidity before the next directional trend begins.
One of the most obvious signals on the chart is the Bollinger Band squeeze, with the upper and lower bands starting to contract after maintaining their width for several weeks. This pattern often appears when market volatility begins to weaken. In many cases, this compression phase foreshadows a strong expansion of price movement. At the same time, the Relative Strength Index (RSI) is gradually moving upward, forming a series of higher lows since bottoming out in February.
This steady increase in momentum suggests that even as the price continues to consolidate sideways, buying pressure is slowly accumulating. As long as $1.32 remains the immediate support level, the price of Ripple (XRP) may continue to consolidate within this range while volatility further compresses.
Wyckoff Accumulation Signals Suggest Ripple (XRP) May Break Through $1.50
In addition to the indicators, the broader price structure resembles a Wyckoff-style accumulation pattern, where the market moves laterally while larger participants gradually accumulate positions.
In this structure, repeated testing of the support level near $1.32 and the resistance level near $1.46-$1.50 suggests that liquidity is being built within a defined range.
If buyers manage to push the price above the $1.46-$1.50 supply area, it could trigger the next round of bullish expansion. If a breakout of this range is confirmed, the price of Ripple (XRP) may target the next resistance levels near $1.65 and $1.80. On the downside, a break below the $1.32 support level could weaken the bullish structure and expose the price to a deeper support area near $1.20.
Currently, the price chart of Ripple (XRP) suggests that the market is compressing rather than declining. With volatility tightening and momentum slowly improving, the current consolidation may represent a preparatory phase before the next major price movement.