XRP has once again slipped below the $3 mark. However, the price level itself isn’t the main concern—instead, the technical signals behind the drop point to a deeper shift in momentum. For the first time since its July breakout, XRP has closed below the midline of the Bollinger Bands on the daily chart, a clear sign that bullish momentum is weakening.
Mid-Band Support Breaks, Momentum Weakens
Until now, the midline of the Bollinger Bands, hovering around $3.19, had consistently supported XRP during pullbacks. With the recent daily close below this level, the trend appears to be reversing. Historically, when a price falls below the centre of the Bollinger Bands, it moves from trending to searching for new support.
At present, that support zone sits near the lower band, around $2.76, which represents another 6.24% downside from the current level.
Bollinger Bands Narrow: A Calm Before the Next Move?
During XRP’s rally, the Bollinger Bands widened, a common sign of increasing volatility and trend strength. Now, those bands are tightening again, a technical signal that often precedes a significant price move in either direction. However, with the midline support now broken, the likely scenario points toward a test of the lower edge in the short term.
Weekly Chart Shows Red Flags Too
Zooming out to the weekly timeframe, XRP is not experiencing a sharp collapse, but the chart structure is beginning to bend downward. The asset appears set to print its second consecutive red candle, which is a bearish sign, even though the token remains above long-term support levels.
More importantly, XRP has already fallen out of the upper band zone on the weekly Bollinger Bands. This increases the probability of a retest of the weekly midline, currently positioned near $2.39. If this happens, XRP would decline by another 20%.
Related article: Ripple Whales Double Down: Can XRP Break Free from $3 Support?
Is XRP About to Collapse?
Despite the bearish momentum, analysts aren’t calling for a total breakdown. Still, the setup is far less favourable than it was just a week ago. Until XRP climbs back above the 20-day moving average, the path of least resistance points downward.
With both the daily and weekly Bollinger Bands suggesting continued cooling, XRP may spend more time in this consolidation phase than bulls would prefer.
Conclusion
XRP’s recent dip below $3 carries more weight than the number itself. The break beneath the Bollinger Band midline on the daily chart signals a shift in market behaviour, and narrowing bands suggest volatility is contracting ahead of a decisive move. Until XRP regains key averages, further dips toward $2.76 or even $2.39 remain on the table.
