Tightening Bollinger Bands on XRP's 12-hour chart suggest imminent price volatility.
Historical patterns link similar setups to sharp price movements in either direction.
External factors, including market sentiment, could heavily influence the breakout direction.
In the 12H chart, Bollinger Bands for XRP continue to tighten up, a clear indication of an impending large price swing. This case comes to light whenever average returns reach extreme figures as the distance between the two bands is the least. It is used by analysts to signal a breakout regardless of whether they are in an upwards or downwards direction is yet to be determined.
https://twitter.com/Steph_iscrypto/status/1869989740318957838 Bollinger Bands: A Sign of Near-Term Volatility
Bollinger Bands are a powerful trading tool for the technical analysis of the market and its volatile character and probable tendencies. This now tightens these bands indicating contraction in the relative pricing and hence tension within the markets. This kind of pattern was in the past followed by dramatic price fluctuations as the market responds to such accumulation.
In the case of XRP, the current position gives traders a significant signal, which is contracting bands. As to whether the movement will be bullish or bearish depends on other factors such as the sentiment on the market, other macroeconomic factors the levels of support and resistance.
Historical Perspective and Forecasts
In the past similar moves in XRP have been indicative of significant price movement. In previous occasions, when the Bollinger Bands were tightened, the XRP price went up or down sharply in a short space of time. Although performance in previous time frames does not dictate the future one, these events should not be dismissed by traders & analysts.
Given this understanding, market participants should pay particular attention to price levels and volumes that characterize XRP in order to understand the breakout direction. Consequently, the result could depend from a various point of view on external conditions including regulation or evolution of the general market feeling.
With the Bollinger Bands narrowing further XRP’s chart waits for the action in the crypto market. Despite its bringing with it a bullish trend or a bearish trend traders are preparing for massive activity in the coming days.
The post XRP’s Volatility Clamps Down—Traders Prepare for Next Big Move appeared first on Crypto News Land.
