XRP Poised for 25% New Year’s Eve Surge, Bollinger Band Signals
XRP Targets Massive Growth
The price of the popular cryptocurrency XRP could end up in 2024 with a significant increase of up to 25%. This optimistic scenario is indicated by the Bollinger Band, a technical indicator developed by the famous trader John Bollinger.
How do Bollinger Bands work?
A Bollinger Band consists of three main lines: a middle line (usually a 20-day moving average) and two lines that represent deviations above and below that average. These lines form a price range that helps investors assess whether an asset is currently oversold or overbought. They also indicate critical support and resistance levels.
Current status on XRP daily chart
A look at the daily chart of XRP shows that the cryptocurrency recently touched the lower bound at $2. This was followed by a strong bullish reaction, as buyers stepped in and pushed the price of XRP up by 2%.
Source: TradingView
Since XRP has entered an oversold zone on a higher timeframe and buyers have shown interest, it can be assumed that the asset has reached its local bottom.
What's next?
The most likely scenario is a test of the upper bound of the Bollinger Band, which is currently sitting at $2.55. If XRP reaches this level, it will represent a 25% increase from its current price.
However, one major hurdle remains: the Bollinger Band average at $2.275. At this level, investors who bought during the recent decline may make some profits. If XRP can successfully break through this average, it will reinforce the buying sentiment.
summary
XRP has the potential to see significant growth towards the end of 2024, guided by technical indicators such as the Bollinger Band. Key levels to watch are the average at $2.275 and the upper bound at $2.55. If these levels are surpassed, XRP could enter the new year at significantly higher prices.