After a nearly 500% growth spurt in recent weeks, the price of XRP seems to be approaching a local ceiling. Although this growth aligns with the overall trend of the crypto market, it is likely that the price of XRP will continue to adjust and eventually stabilize at a significantly lower level than the current $2.26.
Notably, an important technical indicator has suggested this possibility, which 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, creating a price band. Currently, the price of XRP is above the upper band, while its average is at $1 — quite a large gap. The last time this happened was in 2021, when the price of XRP reached a record high, then adjusted back to the average in the following weeks.
XRP Price Chart | Source: TradingView
However, the current situation bears a striking resemblance to what happened in 2018. At that time, the price of XRP reached an all-time high of $3.3, while the average was only around $0.72. Subsequently, the price fell sharply by more than 82% in the following four weeks, down to $0.56, and then accumulated for three years.
Even in 2021, after the price hit the average level, the price of XRP fell below this level, while the Bollinger Bands narrowed again. Although nothing is certain, 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 the vision, and instead, consider taking profits at least partially from the recent strong price surge.
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