Tight-Band Squeeze Puts XRP On Alert for a Violent Break

XRP’s price is currently trading in a no-trade zone, according to veteran market analyst Ali Martinez. Currently, the 4-hour XRP price charts present a setup where the Bollinger Bands (BOLL) have squeezed to their narrowest levels since August, 2026.

Last time a similar compression occurred, XRP’s price soared by 71% in 72 hours, but a Bollinger Band squeeze doesn’t necessarily predict price direction, Ali says. A 4-hour candlestick close above $1.27 would restore bullish dominance, while below $1.23 constitutes a bearish trend continuing.

Meanwhile, other fundamental on-chain metrics painted a bearish near-term picture. The whale sentiment-measuring Chaikin Money Flow (CMF) stood at -0.38, still a heavy distribution among big-time investors. The CMF levels have softened since two days ago, but the $1.23 support line’s still pretty fragile.

The Relative Strength Index (RSI) plunged to oversold levels, which could help a bullish reversal if met with proper trading volume. Another crucial indicator that gives hope for XRP’s bulls is the Bull Bear Power (BBP) shifting towards slightly positive levels, dwelling in the green territory after a 20-day hiatus.

Right now, XRP’s price is attracting leveraged investors on Futures markets, judging from the rising 24-hour trading volume. The volume on XRP’s Futures trading has skyrocketed by 88.20%, now topping $1.95 billion, according to CoinGlass. The Open Interest, otherwise known as unsettled plays, have also spiked slightly.

Conversely, the long-versus-short ratio now points to bearish dominance at 0.83. This means short-sellers are significantly outweighing the bullish positions on XRP’s price. As short-sellers attempt to push XRP below $1.23, the next major demand zone for XRP lies at $1, according to the Bollinger Bands on the one-day charts.

If XRP’s price secures the $1.27 tag on the 4-hour time-frame, the next target is set at $1.34, representing the mid-tier Bollinger Band. Going upward, the next strong resistance area circles around $1.67, a price area unclaimed in months.

With Bitcoin (BTC) testing the lower support boundary at $76,770, XRP’s high price correlation may create an additional hurdle.

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