After an impressive growth of nearly 500% in recent times, the price of $XRP may be approaching a local ceiling. While this trend is in line with the crypto market, the possibility of the price correcting and stabilizing at a lower level than the current level of $2.26 is very high.
The Bollinger Bands technical indicator is warning of this, as XRP price is currently above the upper band, while the average is just around $1. A similar situation occurred in 2021, when XRP price peaked and then corrected back to the average within a few weeks.
However, the current situation bears a striking resemblance to what happened in 2018. Back then, XRP hit an all-time high of $3.30, while the average was just around $0.72. It then plummeted more than 82% over the next four weeks to $0.56, where it then consolidated for three years.
Even in 2021, after the price reached the average, the XRP price fell below this level, while the Bollinger Bands narrowed. Although there is no certainty, based on historical trends, it is very likely that a similar situation will recur. Therefore, it is important not to let vague expectations about the token cloud your vision, and instead consider taking at least some profits from the recent strong price increase.
