Bollinger Bands signal shows XRP may drop to $1: Real-time analysis

According to the technical signals from Bollinger Bands, the current price trend of XRP indeed feels similar to that of 2018. The tightening of the Bollinger Bands and the price breaking below the lower band often indicate increased selling pressure in the market and heightened risks. Let's delve into the current situation.

Firstly, XRP's current price is near the lower Bollinger Band, indicating that the market is in an oversold state. If the price continues to break below this support range, XRP could drop to around $1, which is very similar to the trend in 2018. At that time, XRP also experienced a similar price correction, falling to around $0.9.

Secondly, XRP's trading volume has recently shrunk, indicating a lack of strong buying momentum in the market. In a market with low sentiment and insufficient investor confidence, the signals from the lower Bollinger Band are particularly important, suggesting that there may still be further downside potential.

However, the possibility of a technical rebound cannot be ruled out. The Bollinger Bands do not always indicate a continuous decline; sometimes the market may bounce back near the lower band. Currently, XRP's lower band is around $1.10, and if this price level can gain support and rebound, it may enter a consolidation phase.

Overall, the signals from the Bollinger Bands suggest that XRP may face significant downward pressure in the short term, and the risk of dropping to $1 does indeed exist. However, the market's reaction still depends on changes in the overall macroeconomic environment and market sentiment, so investors need to closely monitor changes in support levels and trading volume to manage risks effectively.