"XRP Enters Volatility Contraction Phase… Up 63% in Similar Past Periods"

An analysis suggests that XRP has entered a volatility contraction phase, moving sideways within a narrow price range after a prolonged decline.

According to Coinpedia, a cryptocurrency-focused media outlet, on the 6th, Greg, an analyst active on X (formerly Twitter), said, "XRP’s price is quiet right now, but structurally it’s not in a weak state."

After falling about 60% from its 2025 peak of $3.65, XRP has recently continued to trade within a limited range around $1.30. The market is focusing on the possibility that this is not mere stagnation but a volatility build-up phase.

On-chain indicators are also showing signs of change. Daily XRPL payment transactions increased to about 2.7 million, and automated market maker (AMM) pools expanded to roughly 27,000. The scale of tokenized assets also rose by about 35% over the past month.

A decline in exchange-held supply is also being observed. As XRP holdings on major exchanges decrease, analysts say the tendency for investors to choose holding over selling is strengthening.

On the technical side, signals of volatility compression are emerging. XRP is currently trading in a tight range with support near $1.28 and resistance near $1.52, while Bollinger Bands have contracted to their narrowest width since June 2025.

Greg explained, "Such volatility compression phases typically appear ahead of a strong directional move," adding, "In similar situations in the past, a rise of about 63% followed."