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Market pundit MoonBitz suggests something is brewing for XRP amid multiple technical signs such as a bullish triangle and tightening bands.
The analyst revealed this in one of his latest commentaries, in which he discussed XRP’s current position amid the price consolidation that has persisted since February. According to him, amid this range-bound phase, a breakout looms.
XRP Consolidation and Drop in Leveraged Trading
For context, since dropping below $3.4 in January, XRP has largely traded around the $2 mark, with most of its price action spent at the lower end of the price level. MoonBitz noted that one of the signs that something is brewing for XRP is actually this extensive consolidation.
Notably, he pointed out that the price has stuck for nearly seven months, a development most analysts see as a signal of an explosive push. Notably, prolonged consolidation builds up buying and selling pressure as traders accumulate positions.
Once price breaks out of the range, this stored energy often triggers a sharp move. Now, while such a sharp move could go in either direction, analysts like MoonBitz expect an upward push due to the previous trend, which saw XRP explode nearly 600% in three months.
Meanwhile, MoonBitz spotlighted a drop in leverage among bullish traders as another sign that something is brewing for XRP. Data from Coinglass confirms this trend. Specifically, XRP derivatives volume has slumped 49.12% in the past 24 hours to $2.52 billion. Moreover, Open Interest is down 1.97%, and Options Volume has dropped 13.55%.
Notably, a drop in bullish leverage or leveraged trading means fewer traders are using borrowed funds, reducing the risk of forced liquidations. This creates a healthier setup for sustained upside, as any rally is more likely due to spot buying than by overextended positions.
Tightening of Bollinger Bands and Bullish Symmetrical Triangle
According to MoonBitz, the third sign that something is brewing is the tightening of XRP’s Bollinger Bands. Data from the XRP daily chart shows that the Bollinger Bands have continued to constrict since mid-May after XRP dropped from the $2.65 high.
Such tightening indicates that volatility is dropping, and this development results in a build-up of pressure, eventually leading to an explosive price run when volatility returns. Interestingly, The Crypto Basic also called attention to a similar slump of the Bollinger Bandwidth. This trend occurred in November 2024, right before the explosive rally.
Conclusively, MoonBitz highlighted a bullish XRP triangle as the fourth sign that something is brewing. Notably, data from his chart shows that XRP has been trading within a symmetrical triangle since it dropped from the $2.65 high in May. Currently, XRP is close to the tip of the triangle, and a breakout in either direction looms.
MoonBitz shows that a breakout to the upside could lead to a 41.46% increase, pushing XRP to $3.2. However, if XRP breaks below, the drop could drive the XRP price down to $1.2. However, the analyst is confident in a break upward. Meanwhile, other market watchers believe the $3 mark would only be a stepping stone, projecting higher targets such as $24.