[Digital Today reporter Yoonseo Lee] XRP is raising expectations of regaining the $2 level as technical and on-chain indicators improve at the same time.

Cointelegraph, a blockchain media outlet, reported on May 11 local time that XRP rose 9% over the weekend and traded as high as $1.50. Some market participants see the rebound as a possible starting point for a full upside breakout.

The current price is 60% below a multi-year high of $3.66 recorded in July 2025. It is also 21% below the year’s opening price of $1.83. Recent trading has focused more on rebound signals than on the size of the decline. That is because XRP’s 30-day cumulative funding rate on Binance stayed biased to the downside for about three months, while the price rose 27% over the same period.

CryptoQuant analyst Darkfost saw the move as a key bullish signal. He pointed out that XRP’s funding rate kept a bearish bias for nearly three months, but XRP rose 27% over the same period. He also mentioned cases in which XRP surged when a funding rate that had stayed negative for a long time began to recover.

A similar pattern appeared in April 2025. XRP reached $1.25 and then continued to recover, later leading to a 126% rally. This time, the gap between futures market sentiment and spot price action is drawing attention as short-position pressure accumulates.

Volatility indicators are also pointing to a compression phase. Bollinger Bands, used to gauge price momentum and volatility range, have narrowed to their tightest level in 10 months. On a two-day chart, XRP’s Bollinger Bands have entered their tightest zone since July 2025.

In the past, an upside break after such compression has led to large price moves. XRP surged about 90% to $3.66 after breaking above the upper Bollinger Band in July 2025, and it rose 72% in July 2024.

Analyst Seth also assessed that XRP, on a daily chart, is showing the strongest Bollinger Band compression in years. The market is focusing less on direction itself and more on the possibility of a large move either way after the squeeze. For now, other indicators are placing more weight on upside potential.

Chart structure is also tilting bullish. On a daily chart, XRP moved above the top of a symmetrical triangle. This pattern is often read as a bullish reversal signal after a long period of sideways trading. XRP has moved between two converging trend lines since February, and the upper trend line has now turned into a key support level near $1.40. If daily closes continue above this level, the pattern implies a target of $2.05. That is about 41% above the current price.

The momentum indicator MACD is also flashing a bullish signal. MACD has formed a golden cross above the zero line, suggesting buying momentum is returning. There have been cases in which XRP posted a strong rebound after a similar MACD crossover.

Analyst CW8900 assessed that, on a three-day chart, XRP has reclaimed a long-term support line and a broad rise is near. He said a shift in the medium- to long-term trend would require a clear break above the $1.40 to $1.61 range, where sell orders have clustered, and price action that holds above it. If those conditions are met, the market’s next focus is expected to be $2, more specifically resistance at $2.05.

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