XRP Fails to Defend Psychological Support, Signaling Entry Into Extreme Volatility Phase

▲ XRP

XRP has fallen below a key psychological support level, with expanding Bollinger Bands heightening volatility risks and prompting investors to exercise caution.

According to cryptocurrency media outlet U.Today on February 21 (local time), XRP failed to maintain the crucial technical level of $1.45 and continues to face downward pressure, showing an unstable trend. Although it attempted to regain upward momentum over the past few days, a lack of strong buying support prevented it from securing a foothold in key price zones. Sellers are pushing the price toward lower levels, and the absence of meaningful changes in trading volume is hindering defensive efforts.

The sharp expansion of the Bollinger Bands, a key technical indicator, has increased the likelihood of heightened market volatility. An expansion of the bands is generally interpreted as a precursor to a significant price move in a particular direction, and XRP is threatening the lower band, exposing the risk of further declines. Investors are closely monitoring the market amid concerns that a breakdown of support could trigger a cascade of selling. Market analysts suggest that rather than a short-term rebound, XRP may undergo a prolonged test of lower support levels.

Macroeconomic uncertainty and weakened sentiment across the broader cryptocurrency market are also weighing on price recovery. With major assets, including Bitcoin (BTC), remaining range-bound, it is challenging for XRP to generate independent upward momentum. The widening gap between the upper and lower Bollinger Bands signals increasing downside risk and is considered a strong technical warning that calls for cautious investment approaches.

Analysts advise that for XRP to re-enter an upward trajectory, it must quickly reclaim the previous support level of $1.45 and establish a solid base above it. However, the current chart structure indicates prevailing downward pressure, and auxiliary indicators such as the Relative Strength Index remain far from overbought territory. If XRP fails to secure support, disappointed investors may trigger accelerated selling, potentially intensifying the pace of decline.

XRP is engaged in a fierce battle over key support levels, while technical indicators warn that increased market volatility is imminent. The price movement in the coming days is expected to serve as a critical turning point for the long-term trend, with investors focusing on risk management and closely observing market developments.

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