XRP Poised for Potential Rebound: Bollinger Bands and W-Bottom Signal Reversal Opportunity

XRP Approaches Critical Bollinger Band Test

XRP is nearing a crucial test as the cryptocurrency touches the lower Bollinger Band for the second time in less than two weeks. This technical pattern, based on John Bollinger's framework, often serves as a key indicator of potential market movements.

While a second touch of the lower band doesn't automatically signal a buying opportunity, it can contribute to a broader process that may lead to a "W-bottom" formation or indicate a weakening trend. Currently, XRP has not broken down, holding steady around $2.07 after a recent dip.

The tightening Bollinger Bands reflect reduced volatility, suggesting the market is preparing for its next significant move. The critical question now is whether XRP will rebound toward the middle band or continue hovering near the lower edge—a sign of persistent downward pressure.

XRP has yet to convincingly reclaim the $2.27 mid-line, leaving its next direction uncertain. If it maintains support around $2.07, it could form part of a reversal pattern. However, a close below the band with strong volume might trigger a drop toward $1.95.

This isn't a breakout yet, but rather the setup preceding one. Bollinger Band theory doesn't predict direction but signals when market pressure could lead to a substantial shift. XRP now sits at a pivotal moment—compressed and awaiting its next decisive move.