Don't Chase XRP's Price Bounce, Bollinger Bands Signal After $200 Million Short Squeeze

Cover image via U.Today Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. Despite the active start of the new week on the crypto market, with over $200 million short positions liquidated as per CoinGlass , popular crypto asset XRP is showing signals that may force most market participants to temporarily step aside. Advertisement Thus, the current technical picture on the charts, as well as on-chain data, indicate that the next at least seven days may become a period of exhausting sideways movement rather than any kind of storm on the chart. Why this week is one to skip for XRP, according to Bollinger Bands The main reason is revealed through the Bollinger Bands indicator on the daily chart, which has started to narrow after a recent spike in volatility, when the price reached local peaks. The corridor is now becoming narrow again, which means a sharp drop in volatility. HOT Stories Bitcoin Surges Past $69K, $196M Worth of Shorts Liquidated XRP in Near-Zero Territory, Triple Bitcoin (BTC) Resistance Ahead, Cardano (ADA) Needs Shocking Capital Injection: Crypto Market Review Trading around $1.35 per token, XRP is not expected to see significant moves either upward or downward in the short term. For active traders, not investors, this means that the market is offering minimal profit potential at the moment. Advertisement XRP/USD daily chart with Bollinger Bands, Source: TradingView Attempting to guess the direction of the breakout from this accumulation at the moment is likely to bring no benefit and only try one's nerves. You Might Also Like Mon, 04/06/2026 - 08:27 XRP's Strong ETF Performance Goes Against Price: 40% Decline, $41 Million By Arman Shirinyan Interestingly, CryptoQuant analyst Maartunn has just officially confirmed his exit from an XRP position as well. According to his data, recent growth was driven by forced short position closures, a short squeeze. After it occurred, in his view, the structure no longer supports holding the position. Advertisement As for fundamental developments around XRP, this week is taking place under the banner of XRPL Japan , an important conference in Tokyo, where representatives of Ripple and XRP Ledger developers from Asia will participate. It will be interesting to observe what news and narratives this event will bring. #XRP #XRP Price Analysis #Ripple News #XRP News