Fresh optimism is building around XRP after a closely watched technical indicator hinted that the cross-border payments token could be approaching a potentially massive upward move. With volatility compressing to unusually tight levels, one trader believes XRP may be preparing for a powerful price expansion.
Tightening Bollinger Bands Flash Major Bullish Signal for XRP
According to widely followed analyst Ali Martinez, XRP is currently displaying the tightest Bollinger Band squeeze on its 3-day chart in more than a year, signaling an unusually compressed volatility setup. He explained that when price action tightens to this extent, it often precedes a “violent price expansion” phase.
Bollinger Bands (BB) are a widely used technical indicator that traders rely on to measure market volatility and evaluate potential momentum shifts within a given price range.
Martinez stressed that the current compression phase in XRP effectively represents a “no-trade zone,” where uncertainty remains elevated until the market commits to a clear direction. Rather than attempting to predict the breakout in advance, he said he prefers to wait for confirmation from the next major candlestick formations before taking a position.
In his view, the key signal will come from a decisive 3-day candle close either beyond the current range or back within it after a breakout attempt. He identified the critical boundaries of the squeeze zone between $1.29 and $1.50, levels he believes could determine the next major directional move for XRP.
 
If XRP manages to secure a decisive 3-day candle close above the $1.50 resistance level, Martinez believes it could mark the beginning of a bullish volatility expansion. Under that scenario, he identified $1.80 as the next major upside target, implying a potentially strong continuation move from XRP’s current trading price of around $1.42 as of publication time.
At the same time, Martinez warned that a decisive close below $1.29 would significantly weaken the bullish setup he is tracking on XRP. According to the pundit, such a breakdown could invalidate the current structure and trigger a broader corrective move, potentially sending the coin back toward the psychologically important $1 region.
All Eyes on the Upcoming Regulatory Tailwind
XRP traders received a key regulatory development after the U.S. Senate Banking Committee advanced the Digital Asset Market Clarity Act in a 15–9 vote, pushing one of Washington’s most closely watched crypto market-structure bills closer to a full Senate debate.
XRP responded positively to the regulatory development, briefly climbing to $1.50 following the Senate banking panel vote.
The legislation still needs to be reconciled with the version passed by the Senate Agriculture Committee before any final progress can be made. After the merger, the CLARITY Act must clear a full Senate vote, undergo House review and reconciliation, and ultimately reach the president’s desk for final approval before becoming law.
If this clearer regulatory timeline unfolds as expected, market commentators suggest it could provide a much-needed catalyst for XRP to break through long-standing resistance levels that have capped its performance for months. With policy uncertainty gradually easing, traders are watching closely to see whether improved regulatory clarity can translate into stronger bullish momentum and a sustained upsurge.
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