After a surge of nearly 500% in recent weeks, the XRP price appears to be approaching a local ceiling. While this growth is in line with the overall crypto market trend, it is likely that the XRP price will continue to correct and eventually stabilize at a level significantly lower than the current level of $2.26.
In particular, one important technical indicator that has hinted at this possibility is the Bollinger Bands. This is a popular tool developed by John Bollinger, consisting of a simple moving average along with two standard deviations above and below, forming a price band.
Currently, XRP is above the upper band, while its average is at $1 — a pretty big gap. The last time something like this happened was in 2021, when XRP hit a record high, then corrected back to the average over the next 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. The price then plummeted by more than 82% over the next four weeks, to $0.56, and 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.
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