XRP (XRP) Price Prediction: Can the Token Reach $4 in February?

The XRP surge has spurred optimism among traders and analysts, with some forecasting the token could reach as high as $4 in the coming weeks.

XRP has outperformed the market in recent weeks, surging over 50% to reach a high of $3.2. The token has also attracted attention due to its strong technicals and promising developments for parent company Ripple Labs.

As traders speculate on XRP's next move, some are suggesting that a rise to $4 could be on the cards. Let's take a closer look at the factors driving XRP's ascent and assess the likelihood of it reaching this key level.

Bollinger Bands Tightening, Anticipating Explosive Move

Prominent crypto investor Armando Pantoja recently highlighted the significance of Bollinger Bands, a widely used volatility indicator, in anticipating XRP's next move. According to Pantoja, the recent tightening of these bands suggests that the token is preparing for an explosive move.

"The volatility squeeze is signaling that XRP could see a significant price shift in the near future. Keep an eye on thepeluche for potential breakouts or breakdowns," Pantoja noted in a recent analysis.

Indeed, a closer examination of XRP's Bollinger Bands on a 1-day chart reveals a narrowing range, indicating that the token's volatility is decreasing. This technical setup often precedes a breakout move, either to the upside or downside.

XRP Price Awaits Breakout Confirmation on 4-Hour, 1-Day Charts, Targeting $4

Renowned technical analyst Dark Defender is also keeping a close watch on XRP's price action, particularly on shorter time frames. According to Defender, XRP is preparing for a breakout, with a short-term target of $4 and support at $3.07.

"The short-term target is at $4 with support at $3.07. Waiting for confirmation on the lower time frames for XRP's next leg up. Get ready!," Defender stated in a recent analysis.

Examining XRP's price chart on a 4-hour interval shows a bullish pennant formation, which is further supported by the converging Bollinger Bands. A breakout from this pattern could propel XRP toward the analyst's target of $4.

However, it's crucial to note that a breakout in the opposite direction, breaking below the lower Bollinger Band, might indicate a bearish reversal, highlighting the need for caution in interpreting technical signals.