An interesting pattern hinting at a potential monumental jump in value has formed on the XRP price chart. This time, the focus is on the Bollinger Bands, a popular technical indicator for traders.
For those unfamiliar with Bollinger Bands, developed by famous trader John Bollinger, they consist of a simple moving average and two standard deviations above and below it. The narrowing of these bands usually indicates a period of low volatility, often preceding significant price movements.
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Thus, the current analysis shows that the bands are experiencing a notable narrowing comparable only to what happened once in 2017, when there was an unprecedented jump in the price of XRP by a staggering 55,000%. At that time, the cryptocurrency's price peaked at $3.30 per token by early 2018.
$XRP has one of the tightest monthly Bollinger Band squeezes in its history and in all of crypto right now. The last time it squeezed like that it shot up 60,000% pic.twitter.com/WU1fspKkwz
— The Great Mattsby (@matthughes13) July 11, 2024
Narrowing also occurred after that, but such strong movements were no longer predicted. For example, in late 2020, the emergence of this pattern preceded a significant sevenfold increase in the price of XRP, reaching almost $2 per token by April 2021.
Thus the continued narrowing of the Bollinger Bands, which began in November 2022, adds weight to arguments in favor of a potential rise in the value of XRP in the near future.
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XRP is currently trading at less than half a dollar per token. Will it be able to execute such a powerful price bounce from there? It seems that only the most desperate optimist would believe it. However, what can be known for sure on the crypto market?