XRP is experiencing increased price pressure, mirroring the broader crypto market’s drop, with the token falling 6% over the past week. This pullback has forced XRP to lose the $1.40 support level for now.
Despite this recent weakness, market analyst Ali Martinez posted on X (formerly Twitter) that a technical setup is forming on XRP’s 3-day chart that could result in a significant rally for the token.
XRP Key Break Levels
According to Martinez, XRP is showing what he calls the “tightest Bollinger Band squeeze on its 3-day timeframe in over a year.” In his view, when volatility compresses that tightly, it often acts like a prelude to a sharper expansion in price, with bigger directional movement following once the squeeze resolves.
Martinez emphasized that this compression zone is essentially a “no-trade zone.” The idea, he said, is to wait and see how the market breaks before taking directional exposure. Instead of guessing, he wants confirmation through the structure of the next candles.
Specifically, he is watching for a clean 3-day candlestick close either outside the established range or back inside it. His key levels for that confirmation are the bounds of the squeeze zone, which Martinez described between $1.50 and $1.29.
If XRP is able to produce a 3-day close above $1.50, Martinez believes it would signal an upward expansion. In that scenario, he flagged $1.80 as his primary target, suggesting the next phase could push the coin meaningfully higher from current trading levels of $1.37 at the time of writing.
On the other hand, a close below $1.29 would change the tone. Martinez stated that such a breakdown would invalidate the immediate bullish structure he is monitoring and could open the door for a deeper correction, with the altcoin potentially dropping toward the $1 level.
Regulatory Catalyst Ahead
While technical levels can guide near-term trading expectations, XRP’s path could also be influenced by regulatory developments in the United States.
In a recent report, market expert Sam Daodu referenced the CLARITY Act, which cleared the Senate Banking Committee by a 15–9 vote on May 14. He explained that XRP reacted positively to that progress, rallying to $1.54 in response to the news.
In his assessment, a full Senate vote in June could strengthen expectations that the bill may receive presidential approval before the White House deadline on July 4. If that clearer regulatory timeline plays out, Daodu suggested it could help the token overcome resistance that has limited its performance for months.
The expert identified the $1.44–$1.45 level as the sell wall—an area where selling pressure has capped upside. In Daodu’s view, breaking above that wall would be a meaningful step, and he pointed to a further rally toward $2 as a confirmation of the coin’s upside trajectory.
Featured image created with OpenArt, chart from TradingView.com
