On the price chart of XRP, a fascinating pattern has appeared that, if past patterns continue, suggests a potentially enormous increase in value. the centre of interest? One widely used technical indicator in the trading industry is the Bollinger Bands.
According to the present study, there has been a notable shrinkage of the indicator, which represents volatility and price range. There was just one other instance of this phenomena in 2017, which happened to coincide with an extraordinary 55,000% increase in XRP’s price. The price reached an incredible peak of $3,317 per token on January 1, 2018, during this time.
To put Bollinger Bands, which were developed by the well-known trader John Bollinger, simply involve plotting two standard deviations above and below a moving average. A period of low volatility is usually indicated by the shrinking of these bands, which frequently occurs before notable market moves.
Can history repeat itself?
A comparable decline was noted in October 2020, which came just before XRP’s value increased by 700% to $1.96 per token by April 2021.
XRP is now selling for slightly less than 50 cents per coin. The Bollinger Bands’ continuous tightening, which started in November 2022, strengthens the case for XRP’s possible near-term increase in value.
Investors can find a gripping tale about the relationship between XRP’s price fluctuations and the Bollinger Bands, even though history may not always repeat itself in the wild world of the cryptocurrency market. But it’s important to understand that there are no guarantees.
However, with XRP taking the lead in the cryptocurrency market once more, there’s a chance for a big price pump, supported by information from Bollinger Bands.
