TL:DR;

Ripples cross-border token has slumped hard with the rest of the market today, dumping to a two-week low of under $2.7. While thats a big move on its own, the squeezing Bollinger Bands suggest that XRP could face another one soon.

XRPUSD. Source: TradingView

XRP Dumps 15%

Its safe to say that Ripples native token became one of the best performers throughout the entire crypto market following the US elections. The recent speculations that it will be included in the potential US digital asset reserve also benefited the asset, which went from under $0.6 in early November to $3.4 in January.

This cycles peak coincided with the all-time high from 2018, but XRP failed to breach it. It started to lose traction in the next few weeks and retraced to $3.15 during the weekend. However, this is where the situation worsened for the entire crypto market.

Bitcoins price tumbled below $100,000 for the first time in a week, and XRP was not spared. The third-largest crypto asset plunged from $3.15 to a multi-week low of $2.66 (on Bitstamp) before it recovered some ground to $2.8 as of now.

Thus, its intraday low came after a 15% drop. While this sounds like a significant move, Ali Martinez warned that the Bollinger Bands are squeezing on XRPs daily chart, which could lead to another significant price move.

The Bollinger Bands are squeezing on the $XRP daily chart, signaling that a significant price move could be on the horizon. pic.twitter.com/Sv7miRidTb

Whats Next?

Weighing in on XRPs upcoming potential moves, macro trader Jason Pizzino noted that the next support lines are at $2.3-$2.5. The asset could avoid a price drop to those levels if its daily close is above the previous swing top at $2.9, which is not the case right now.

$XRP failing at the 50% extension. Lower volume into the $3.40 top and closes under $3.16 suggest buyers didnt have enough conviction on the next move higher. The hope for the bulls is closing above the previous swing top at $2.90. Support under here is approx $2.30-$2.50. pic.twitter.com/I7L78vthNV

Nevertheless, most analysts remain bullish on XRPs long-term potential. Rob Art said XRP broke out of a 7-year-long triangle recently and will soon resume its rally, but only after it shakes out all the emotional buyers and sellers. After that, it will turbo-send XRP higher.

Crypto Bitlord shared a similar opinion, indicating that XRP will experience a vertical style black swan.

I’m convinced that $XRP will experience a vertical style black swan.

The price will go straight upwards with no warning.

It will go so high nobody could have ever predicted it.

All shorts will cease to exist from that day.

The world will change and bitcoin will be flipped.