XRP's technical and on-chain signals are suggesting the possibility of a sharp rise.

Cointelegraph reported on Thursday that XRP rose 3 percent on the day to $1.40. TheCryptoBasic said Bollinger Bands, a key technical indicator, have entered their narrowest range in eight months and volatility is expected to expand soon. Bollinger Bands are a technical indicator traders use to gauge price momentum and volatility within a certain range, and reaching their tightest point in eight months suggests volatility may soon pick up.

TheCryptoBasic said, "Daily XRP Bollinger Bands have fallen to the highest level since before the July $3.6 rally." It added that when daily XRP Bollinger Bands broke above the upper boundary in July 2025, XRP/USD surged to $3.66, and a tight band range signals a potential breakout. Tight Bollinger Bands often reflect low volatility, and a subsequent breakout can lead to an explosive rise, it explained.

XRP's falling wedge pattern is pointing to a target price around $2.55. On the weekly chart, price has been compressing between descending trend lines since July 2025, and the lower boundary is currently acting as key support around $1.30. The relative strength index (RSI) is also recovering from the oversold zone, showing selling momentum is weakening.

Exchange reserves fell to $1.28 billion, down to May 2021 levels, meaning XRP is being accumulated by long-term investors. As XRP declines on exchanges, selling pressure eases, raising the likelihood of a short-term rebound. It also said selling continues in local exchange-traded funds (ETFs), with net outflows of $50.8 million for five straight days.

Experts warned that XRP needs to hold its price in the $1.73 to $2.00 range and continue rising to confirm a long-term trend reversal.