Cryptocurrency Market Experiencing "Choppy Accumulation": XRP Bandwidth Indicator Dips Below Annual Threshold, Whale Holdings Movement Suggests Shift in Market Direction
Original Title: XRP Resembles a Compressed Spring Poised for a Significant Price Move as Key Volatility Indicator Mirrors 2024 Patterns
Original Author: Omkar Godbole
Original Translation: Daisy, Mars Finance
XRP resembles a compressed spring, ready for a significant price move, as a key volatility indicator mirrors patterns from 2024. A technical indicator based on standard deviation suggests XRP and BTC may be in for another round of intense volatility.
Key Points:
The price action of XRP and Bitcoin appears like a compressed spring, signaling a potential major price swing. The Bollinger Bandwidth of these two cryptocurrencies has dropped to the lowest level since October 2024, indicating a buildup of market energy. While a contracting Bollinger Band may suggest an uptrend, it could also precede a sell-off, as seen after the FTX crash in October 2022.
The price trajectories of XRP and Bitcoin (BTC) resemble a tightly compressed spring that could unleash energy and see a rebound at any moment.
This signal comes from a key volatility indicator—the Bollinger Bandwidth. Bollinger Bands are volatility ranges set based on an asset's 20-period moving average (SMA) with an upper and lower boundary of two standard deviations (±2σ). The bandwidth measures the space between these ranges as a percentage of the 20-day moving average.
On XRP's 4-hour candlestick chart (each candle representing 4 hours of price action), the Bollinger Bandwidth has narrowed to the lowest level since October 2024. The 4-hour candlestick is popular in the 24/7 cryptocurrency market, with traders often using it to analyze and predict short-term price movements. Bitcoin's 4-hour candlestick chart also shows a similar Bollinger Bandwidth pattern to XRP.
The long-standing market consensus is that a narrowing Bollinger Bandwidth (reflecting a period of market calm) is like a compressed spring, often signaling a significant market movement on the horizon.
During these periods of market calm, energy continues to accumulate, and once the direction is clear, it will be released dramatically, often leading to a sharp price increase or decrease. The sharp rise of XRP and Bitcoin in November to December 2023 occurred after a long period of sideways movement, with the Bollinger Bands narrowing to a level similar to the current one.
However, narrowing of the bands does not always signal a bullish trend; it can also precede a sell-off. For example, in October 2022, the Bollinger Bands narrowing foretold a significant volatility, and the subsequent FTX collapse caused a steep market decline.
It is currently uncertain whether this "spring compression" will trigger a bullish move or lead to a downward spiral for these two tokens. Federal Reserve Chairman Jerome Powell's recent hawkish comments and the sell-off behavior of some whales lean more towards the latter.
Stay vigilant!

XRP and BTC with Bollinger bandwidth. (TradingView/CoinDesk)
You may also like

$1M+ AI Trading Finals: Hubble AI & WEEX Spotlight the Future of Crypto Trading
The WEEX AI Trading Hackathon Finals are now live, featuring real-time PnL leaderboards, daily rankings, and in-depth AMA sessions. Explore how top AI trading strategies perform under real market volatility and follow the competition as it unfolds.

WEEX Alpha Awakens Final Round Has Officially Begun
Day 1 of the WEEX AI Trading Hackathon Final Round is now live! Watch top algorithmic trading strategies compete with real capital. Follow the action from Feb 3–16, 2026, with $880K+ in prizes. Tune in live now. #AITrading #TradingHackathon

WLFI Team Meeting, Ally Meeting, Seaside Villa Cryptocurrency Business Kickoff

OpenClaw Hackathon, What are some projects worth checking out

The Bithumb 2000 BTC Mistake: The Fundamental Issue with CEX Ledgers

LayerZero releases L1 chain Zero, CZ appears on the All-In podcast, what's the overseas crypto community talking about today?

Binance Alpha has turned the airdrop into a "blind box" game
AI Wars: WEEX Alpha Awakens - The Global AI Trading Hackathon Redefining Financial Markets
Compete in WEEX's global AI trading hackathon with $880K+ prize pool. Build & test algorithms in live markets. Bentley & crypto prizes await top AI trading strategies. Join now!

Kyle Samani's Exit Scam, Is There More to the Story?

February 10th Market Key Intelligence, How Much Did You Miss?

Tokenomics New Paradigm? When Backpack Starts Enabling VCs to "Deferred Gratification"

BankrCoin Achieves New Milestones as YZi Labs and ETH Investors Make Significant Moves
Key Takeaways BankrCoin (BNKR) hit a new all-time high with significant market activity. YZi Labs executed a major…

Bitcoin Tests $75K Amid Market Predictions
Key Takeaways Bitcoin shows a 47% chance to test the $75,000 mark this February, contrasting with a potential…

MrBeast Acquires Step to Enhance Financial Offerings for Youth
Key Takeaways YouTube star MrBeast has acquired the financial services platform Step through Beast Industries. The acquisition aims…

Polymarket Predicts Bitcoin Uptrend as MrBeast Ventures into Fintech
Key Takeaways Bitcoin’s Potential Surge: Polymarket denotes a fluctuating probability of Bitcoin achieving $75,000 in February, reflecting volatile…

MrBeast Enters Financial Services with Step Acquisition
Key Takeaways Binance announced an Alpha Airdrop event, highlighting the growing trend of gamified airdrops. Bitcoin prediction markets…

Analysts Predict Bitcoin May Fall to $55K as Support Levels Threaten
Key Takeaways Analysts suggest a potential drop of Bitcoin to $55K if current support levels are breached. Galaxy…

Analysts Predict Bitcoin May Drop to $55K Amid Support Challenges
Key Takeaways Experts caution that Bitcoin could fall to $55,000 if current support levels are breached. The market…
$1M+ AI Trading Finals: Hubble AI & WEEX Spotlight the Future of Crypto Trading
The WEEX AI Trading Hackathon Finals are now live, featuring real-time PnL leaderboards, daily rankings, and in-depth AMA sessions. Explore how top AI trading strategies perform under real market volatility and follow the competition as it unfolds.
WEEX Alpha Awakens Final Round Has Officially Begun
Day 1 of the WEEX AI Trading Hackathon Final Round is now live! Watch top algorithmic trading strategies compete with real capital. Follow the action from Feb 3–16, 2026, with $880K+ in prizes. Tune in live now. #AITrading #TradingHackathon