Popularity price Cryptocurrency, XRPThe eyes are a big test in the last hours. After falling 6.2% on Monday, two days ago, the XRP price found a bottom at the 20-day moving average, which also acts as an average in the Bollinger Bands indicator.

Bollinger Bands consist of three lines: the upper, middle (middle) and lower lines. The average is usually a 20-day moving average, while the upper and lower bands are two standard deviations away from this average. Prices that fluctuate within these ranges can indicate a range-bound market, while a breakout of these levels often indicates upcoming trends.

After testing these levels several times since then on smaller time frames, it was done XRP price The stock closed above it the next day and, as is typical in technical analysis books, rose 4.51%.

However, the recovery faced a setback when news emerged that the US Department of Justice (DoJ) had received approval to sell Bitcoin seized from the notorious Silk Road. This announcement sparked a market-wide sell-off, sending the price of XRP plummeting once again.

Fortunately, the price did not break the recent average of the Bollinger Bands on the daily chart. Maintaining this support level has maintained an upward bias for XRP. But it is possible to retest the midline again, which would mean an additional 1.48% decline from current levels.

If this retest is successful, the path towards the Bollinger Band upper bound at $2.51 becomes more plausible, offering the potential for significant gains. Conversely, a breakout of the center line could shift focus to the lower part of the Bollinger Band, around $2, where buyer interest is likely to be tested.