The price of XRP (XRP) rose 3% to above $1.40 on Friday, as several technical and onchain indicators indicated that it was headed for a “major” breakout.
Key considerations:
-
The Bollinger Bands indicator XRP is now seeing the potential for a massive price breakout.
-
The XRP breakout pattern is targeting $2.55.
-
Declining exchange balances and constant outflows indicate an accumulation of XRP.
XRP Bollinger Bands indicate a “side” breakout
Bollinger Bands, a technical indicator used by traders to assess the momentum and volatility of prices within a certain range, has reached its tightest point in eight months, indicating that volatility should soon be expected.
related to: Ripple to return $750 million in shares by April: Report
“Daily XRP Bollinger Bands have dropped to their strongest level since July 2025,” analyst The Crypto Basic said in an X post on Thursday.
The XRP/USD pair rose almost 60% in July 2025, reaching a maximum of $3.66 after breaking the upper boundary of the Bollinger Bands.
“Bollinger breakouts often indicate low volatility, and a breakout that can then lead to a breakout run,” added The Crypto Basic.
Another analyst called it a preparation for a “significant breakout.”
An XRP Update analyst said that XRP price “continues to consolidate in a symmetrical triangle structure with strengthening Bollinger Bands and RSI stability”.
“This volatility squeeze suggests that the market may be poised for a major breakout.”
XRP analyst Arthur said that while the Bollinger Bands are strengthening, the daily close of the $1.50 candlestick “confirms momentum.”
XRP’s falling pattern is targeting $2.55
XRP’s price action on the weekly chart is forming a bearish bearish pattern, a structure typically associated with an uptrend after a long downtrend.
The price has been squeezed between two downtrends since July 2025, and the lower boundary now acts as key support near the $1.30 psychological level.
Meanwhile, the relative strength index (RSI), on the weekly chart, is returning from oversold territory, indicating a reduction in selling momentum.
Historically, similar RSI conditions have preceded strong reversals in XRP. For example, XRP rose 85% from July to September 2022 after the RSI recovered from oversold conditions.
A confirmed break above the upper trend line could pave the way for a run to the upside target of the preferred chart pattern at $2.55, 78.5% of the current price.
As reported by Cointelegraph, the bulls need to secure a breakout and sustain the price of XRP from $1.73-$2 to signal a long-term trend reversal.
A decrease in supply on exchanges is contributing to the rise of XRP
The supply of XRP on exchanges, or the total amount of coins held at exchange addresses, continues to decline, reflecting accumulation and long-term investor confidence.
The balance of XRP on exchanges fell to 12.8 billion on Friday, the level last seen in May 2021.
A shrinking balance means fewer XRP tokens are available for sale, reducing selling pressure.
Such outflows typically indicate strong accumulation by large holders, who move funds into cold storage, reducing immediate selling pressure and increasing the possibility of XRP’s short-term return.
However, XRP’s recovery may be delayed by continued buying back of XRP exchange-traded funds (ETFs), which have recorded outflows for five consecutive days totaling $50.8 million.
This article does not contain investment advice or recommendations. Every investment and business move involves risk, and readers should do their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph shall not be liable for any loss or damage arising from your reliance on this information.
