XRP Price Skyrockets 32% - But Bollinger Band Signal Flashes Major Bearish Warning

XRP just ripped higher—a blistering 32% surge that's got the crypto crowd buzzing. But seasoned chart watchers are spotting a classic technical trap forming.

The Bollinger Band Squeeze: A Volatility Time Bomb

That parabolic move? It's happening inside a tightening Bollinger Band squeeze. For the uninitiated, that's a classic volatility contraction pattern. When the bands pinch this tight, a massive expansion—a violent move in either direction—is almost guaranteed. The setup is textbook, and the current price action is hugging the upper band. History suggests that's less a launchpad and more a precursor to a sharp rejection.

Momentum vs. Mechanics

The bullish momentum is undeniable, fueled by the usual cocktail of speculation and hopeful narratives. Yet, the mechanical signal from the bands is screaming caution. It's the financial markets' oldest story: price and indicator diverging, with one destined to yield. Smart money isn't just looking at the green candles; it's watching for the break below the middle band—the 20-period simple moving average—which would confirm the bearish reversal and likely trigger a cascade of stop-losses.

So, enjoy the rally while it lasts. Just remember—in crypto, the market's favorite pastime is separating euphoric traders from their capital, often right after a 32% 'bullish' surge.

TLDR

• XRP jumped 32% since Jan. 1, reaching a daily high of $2.41
• Bollinger says XRP’s technical pattern appears weaker than Bitcoin’s
• Peter Brandt noted XRP’s chart “without comment,” fueling debate
• XRP’s trading volume surged 133.4% to $7.79B, showing market interest

XRP’s price has surged since the beginning of 2026, attracting attention from analysts and traders. Despite this rise, legendary trader John Bollinger has issued a warning, suggesting the rally lacks strength compared to Bitcoin and Ethereum. His cautious outlook, combined with a cryptic post by veteran trader Peter Brandt, has sparked debate within the crypto community.

Legendary Trader Issues Bearish Warning on XRP Rally

John Bollinger, known for creating the Bollinger Bands indicator, has commented on XRP’s recent rally with caution. Despite XRP’s price climbing by over 32% since the start of 2026, Bollinger stated that the pattern behind the rise is not strong compared to other major cryptocurrencies.

He explained that XRP’s recent upward movement pushed the price above the upper Bollinger Band. However, he said the price pattern is “weaker” and lacks a solid base. According to him, the volatility compression, or “squeeze,” which often precedes stronger rallies, is not as clear in XRP’s chart.

Re my previous post about the base, squeeze, and breakout in $BTCUSD. Someone asked about $ETHUSD. Same pattern, a bit delayed, following not leading.https://t.co/XVv2j33wVQ
And ripple, strong lift, but the pattern is weaker. BTC > ETH > XRP for now.https://t.co/MFpRt0bIwf

— John Bollinger (@bbands) January 6, 2026

Bollinger added that while Ripple experienced a “strong lift,” its technical setup remains less promising than bitcoin or Ethereum. He said Bitcoin still holds the lead, followed by Ethereum, with XRP trailing behind due to its noisier price activity and weaker structure.

Peter Brandt’s Post Sparks Community Debate

Veteran market analyst Peter Brandt also weighed in on XRP, but in a more cryptic manner. In a post on social media platform X, Brandt shared a chart of XRP with only the words “Without comment.”

The timing of his post coincided with a 9.35% daily gain in XRP, which briefly traded at $2.41. While Brandt did not elaborate, the chart he shared suggested XRP has not yet broken a key resistance level.

without comment pic.twitter.com/VBAsQ1vS0u

— Peter Brandt (@PeterLBrandt) January 5, 2026

Brandt believes that a true breakout for XRP WOULD only be confirmed at $3.50. He implied that unless this level is crossed, XRP could remain in a vulnerable zone. His comments stirred reactions from the community, with one analyst urging him to study XRP’s long-term trend.

Price Action and Market Metrics Show Momentum

XRP began 2026 trading at around $1.77 and has since gained strong upward momentum. On Jan. 6, it recorded a high of $2.41 after bouncing off a low of $2.11.

Market data shows that open interest in XRP surged by 21% while trading volume climbed by 133.4% to $7.79 billion. These numbers suggest active participation and renewed interest from traders.

Despite concerns from analysts, the coin has maintained support above the $2 mark. Some traders remain optimistic, pointing to a recent golden cross as a bullish signal for further gains.

Analyst Concerns About Sustainability of the Rally

While recent gains may encourage investors, both Bollinger and Brandt appear cautious. Bollinger’s analysis emphasized that the quality of the base for XRP’s rise is lacking. He pointed out that ethereum is also following Bitcoin’s pattern, but in a delayed manner, suggesting Bitcoin remains the leader.

Brandt’s $3.50 breakout target is still far from current levels. He warned that many holders may begin selling once XRP returns to previous buying prices, particularly those who bought at $3 or above.

This could lead to selling pressure and reduce any momentum unless XRP breaks past critical resistance.