XRP is only 5% away from bottoming out or a sharp drop, Bollinger Bands issue a warning

XRP price is rapidly approaching a critical point, with less than a 5% fluctuation potentially determining whether the price will ultimately rebound from the bottom or fall into a more severe decline, as reflected by the Bollinger Bands. TradingView chart.

Therefore, the XRP price is currently almost perfectly positioned at the monthly Bollinger Bands middle band at $1.8214. This is not just an ordinary support level as shown on the monthly chart; it is more like a dividing line. If the price holds this line, the sell-off appears to be a normal pullback. If it breaks below this line, the market will not hesitate to quickly accept lower prices.

Buyers are trying to hold this area, but there is almost no support below. If XRP closes significantly below the middle band, there is hardly any support nearby to stop its decline. In addition, the lower Bollinger Band has extended to around $0.0395, and this extreme position indicates that if this level is breached, the drop could be very large.

This does not mean the price will fall directly to that level, but it does show how loose the market structure could become once the mid-range collapses.

XRP Faces Black Friday 2.0 Version

However, there is one price level that stands out in particular. Since October 10, a long lower shadow near $1.2543 marked the last strong entry by buyers after intensified selling. If XRP falls below $1.82, the far end of this wick will become the next obvious area closely watched by market participants to determine whether there is real demand.

This puts XRP at a very clear crossroads. If the middle band holds, the recent decline will look like a distribution after the previous rise. If it breaks below the middle band, the situation will change, and the risk of a sharp price drop will increase.