HomeCrypto NewsMarketXRP Bollinger Bands Tighten to Historic Levels, Mirroring Prior 60,000% Price Spike
XRP Bollinger Bands Tighten to Historic Levels, Mirroring Prior 60,000% Price Spike
XRP Bollinger Bands recorded one of the tightest monthly squeezes in the asset’s history, which previously resulted in a 60,000% price rally.The Great Mattsby (TGM), a seasoned technical analyst, called the investing public’s attention to this pattern in a recent analysis. Notably, the disclosure comes at a time when sentiments around XRP are generally down amid a persistent market downtrend.XRP has followed the broader market’s bearish trajectory, having collapsed 40% from its yearly top of $0.7440. This downturn was triggered by Bitcoin’s (BTC) crash amid sustained selling pressure by the German government and Mt. Gox. Despite a mild recovery this week, the momentum remains bearish.- Advertisement -XRP Bollinger Bands Tighten Amid ConsolidationAs bearish forces clash with a renewal of bullish pressure, the XRP market has slipped into a consolidation phase. TGM confirms that this occurrence has resulted in the tightening of the Bollinger Bands on the monthly timeframe.For the uninitiated, the Bollinger Bands tighten when the bands narrow, indicating low volatility in the market. This typically happens during periods of consolidation, where price movement is minimal. Santiment data indicates that XRP’s 1-day volatility has dropped to 0.00572 following a spike observed on July 5.
This tightening of the Bollinger Bands often precedes a significant price movement or breakout. The price explosion occurs as the market shifts from consolidation to a more active phase. Interestingly, the tighter the Bollinger Bands squeeze, the more explosive the market could get.
