TL;DR
- XRP’s Bollinger Bands have tightened recently, which may be a precursor to a significant price swing in either direction.
- Investor behavior appears bullish, with more XRP being moved to self-custody and active addresses reaching a multi-month high of over 1.12 million, suggesting a potential move to the upside.
The Calm Before the Storm?
The price of Ripple’s cross-border token is currently far from the peak level of almost $3.40 witnessed in January, and over the past month, it has been hovering in the $2.08-$2.47 range. Currently, it trades at roughly $2.22 (according to CoinGecko’s data), but the tightening Bollinger Bands imply that a significant move could be on the way, as xoom recently posted about.
XRP Bollinger bands tightening.
Every time we’ve seen this happen, you know what happens next 😉 pic.twitter.com/1wzH9Kc9rp
— xoom (@Mr_Xoom) June 16, 2025
Developed by John Bollinger in the 1980s, the technical tool helps identify overbought or oversold conditions, indicating possible trend reversals. When the bands tighten, it signals low volatility – a sign that a big move may be approaching soon.
As CryptoPotato reported, the bands squeezed substantially towards the end of 2024 when XRP was worth approximately $2.10. In the weeks ahead, the token experienced a major bull run, almost matching its all-time high.
The bands tightened again in April this year when Ripple’s native cryptocurrency was trading at around $2.13. Several days later, the price soared above $2.60.
However, the indicator isn’t a guaranteed signal for a rally – at times, the price may stay flat or even drop sharply. On that note, some users on X speculated in the comments whether a pullback to $2 could be next.
Something Entirely for the Bulls
CoinGlass’ data shows that it has been rare for exchange inflows to surpass outflows over the past several weeks. This suggests that many investors have opted to move their holdings off centralized platforms toward self-custody methods, which reduces the immediate selling pressure.
Another element that could be seen as a positive sign from the bulls is the increasing number of active XRP addresses. Earlier this week, the popular X user Ali Martinez revealed that the figure jumped to a multi-month high of over 1.12 million, which reflects increased adoption or utility of the network.
Meanwhile, if you want to explore some optimistic price predictions involving Ripple’s cryptocurrency, feel free to take a look at our dedicated article here.
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