This is why Ripple (XRP) could be on the verge of a big move

XRP is poised for significant volatility, but it is unclear whether this will turn into a rally or a sharp pullback.

Ripple’s native cryptocurrency has been trading in a relatively tight range for the past few days, but one indicator suggests that a major price move could be on the way.

Opinions differ among analysts: some projects have significant upside in the short term, while others see a new amendment as a more likely outcome.

Fasten your seat belts

After a period of extreme volatility earlier this year, XRP price action seems to have calmed down a bit lately. Over the past week, the asset has been trading between $1.33 and $1.47, currently trading around $1.40.

Ali Martinez noted the bearish volatility, suggesting that a major move could be on the horizon given the tight Bollinger Bands. Developed by John Bollinger in 1980, the technical indicator helps traders identify oversold or overbought conditions.

It consists of a moving average with upper and lower bands that widen or narrow as market conditions change. When bands tighten, this indicates a period of low volatility that sometimes precedes a strong rally or sharp decline.

Analysts on X are completely divided on the potential future performance of XRP. Some, like Trading Shot, think the price could drop below $1, while WealthManager warned that “a big drop could be imminent.”

Others, including EGRAG CRYPTO, pointed out that XRP’s RSI has dropped on a weekly basis, entering historical oversold levels. Such a trend is usually followed by a price pump, while an overbought territory is seen as a warning for an incoming correction.

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Another industry participant who touched on XRP’s performance is X user CRYPTOWZRD. They stated that the asset needs to retrace $1.4230 to enter the upside territory, while the rejection could suggest further declines and short opportunities.

The focus on the breakout of XRP ETFs is another development that doesn’t sit well with the bulls. The data shows that outflows outnumbered inflows over the past four days, suggesting that major institutional players such as pension funds, hedge funds and asset managers have reduced their positions.

The first company to launch an XRP ETF in the US with 100% exposure to the token is Canary Capital. This happened in November 2025, and Bitwise, Grayscale, Franklin Templeton and 21Shares followed shortly after. According to SoSoValue, these financial instruments have generated a total net income of $1.21 billion to date.