Ripple (XRP) has been looking for a catalyst to boost its price for some time now. Analysts are optimistic about the XRP asset rising in the coming months thanks to several updates to the XRP network. The coin has been experiencing high volatility recently, with its price being affected by regulations and market trends.
One analyst is predicting a major rally for Ripple XRP soon. According to a recent analysis by digital market expert Matt Hughes, XRP’s Bollinger Bands on the monthly chart may narrow to levels not seen since 2017. It should be noted that these levels have led to a significant surge in the price of the coin.
Will Bollinger Bands Continue to Squeeze Ripple XRP: Is the Price Heading for a Rapid Rally?
Bollinger Bands are a market volatility indicator used to assess market conditions. The bands for XRP have been gradually narrowing month over month recently. When the gap between the upper and lower bands narrows, it signals a phase of low volatility, which is often followed by a sharp price move. As such, Hughes believes “this is only going to end one way,” pointing to a sharp rise in the price of Ripple’s XRP.
From the time the Bollinger Bands narrowed in early 2017 to the all-time high a year later, XRP has risen by more than 75,000%. It has been one of the best performing cryptocurrencies during that period, similar to Bitcoin’s performance during the same period.
XRP is currently trading at $0.5383, up 2.36% in the last 24 hours. The coin has fallen by 5% in the past week and 9% in the past month. Despite its major victory against the US Securities and Exchange Commission, XRP has failed to shake off the market pressure, gradually moving between the $0.50-$0.55 price range. However, traders do not seem to be abandoning the coin, as trading volumes have increased by 62.72% in the past day. Investors are relentlessly looking for momentum to push XRP price back towards $0.60
As the Bollinger Bands continue to tighten, it could create enough pressure to push the price above $0.60 and beyond. Coincodex currently expects the price to break this level, with a target of $0.63 by the end of this month.
