Here’s Why XRP Price Won’t Stay Flat For Too Long

The crypto market is experiencing a challenging period following DeepSeek's launch of AI technology at significantly lower costs than GPT.

CryptoSlate Top Stories is a daily email roundup of our best stories for advanced crypto traders, investors and HODLers.

Sign up to receive our daily Top Stories email in your inbox each morning.

Good morning, dear readers.

Crypto markets are seeing a challenging period after DeepSeek launched its AI technology at much lower costs than GPT, disrupting stock markets and impacting the crypto sector.

XRP price is seeing the effects of these markets, now trading below $3 for the first time since mid-January after seeing relative stability in the $3-3.10 range.

Related: When Will XRP Price Peak in 2025? Expert Prediction

Bollinger Bands, created by technical analyst John Bollinger in the 1980s, are three lines: a middle band (20-day simple moving average) with upper and lower bands representing standard deviations of the price. As these bands contract (“squeeze”), it can often signal a significant price move is brewing.

In XRP’s case, the current Bollinger Band squeeze doesn’t give a clear directional bias. The price is showing no consistent touches of either the upper or lower bands – a classic sign of indecision in the market. Traders may want to wait for confirmation before making directional bets.

The technical structure shows the XRP price trading near the middle Bollinger Band, with the bands themselves showing notable compression. This pattern often precedes a decisive move in either direction, though the direction itself isn’t predetermined by the squeeze alone.

Support remains firm around the $3.1052 level, with the psychologically important $3.00 mark serving as the next major support zone should current levels fail to hold. On the upside, a clear break above $3.1299 could signal renewed bullish momentum.

The consolidation phase, marked by decreasing volatility, suggests accumulation or distribution is taking place. However, traders should note that while Bollinger Band squeezes often precede significant moves, the direction of the breakout isn’t guaranteed and should be confirmed by additional technical indicators and market conditions.