Ripple’s XRP appears prime for a mega price rally in the coming months, according to a widely watched technical indicator. XRP’s monthly chart Bollinger bands have carved out a pattern that preluded the token’s near-vertical rally in 2017.
XRP To Mirror 2017 Rally To New Highs?
Chartist-cum-trader The Great Mattsby has expressed bullish optimism about XRP, emphasizing the cryptocurrency’s potential for a major rally.
Created by renowned trader John Bollinger in the 1980s, Bollinger Bands comprises three bands. The middle one is the 20-period simple moving average of the asset’s price. The upper band is two standard deviations above the middle band and the lower band is two standard deviations below it.
The narrowing of these bands is akin to a tightly compressed spring about to make a huge move in either direction.
As The Great Mattsby observed in his post on X, XRP currently has one of the tightest monthly Bollinger Band squeezes in its history and the entire crypto market. The squeeze resembles developments before the previous parabolic bull rally in 2017 when the price of XRP skyrocketed by an eye-watering 60,000%. At the time, XRP witnessed a massive price rally, which preceded its surge to new all-time highs of $3.84 per coin by January 2018.
$XRP has one of the tightest monthly Bollinger Band squeezes in its history and in all of crypto right now. The last time it squeezed like that it shot up 60,000% pic.twitter.com/WU1fspKkwz
— The Great Mattsby (@matthughes13) July 11, 2024
Tightening of the Bollinger bands has been witnessed in several other instances after that, but similar parabolic price actions did not occur. In late 2020, for instance, this pattern preceded a marked sevenfold appreciation in the XRP price, reaching close to the psychologically important $2 mark by April 2021.
As of writing, XRP is valued at $0.448, according to data from CoinGecko. If it repeats the 2017 60,000% surge, it could reach as high as $250. However, The Great Mattsby doesn’t see the asset reaching such heights before 2028. Notably, past results don’t guarantee future performance, and the possibility of a massive move to the downside cannot be ruled out.
When asked what he thinks the price of XRP will be by the end of 2024, the pro-trader responded:
“Probably nothing exciting. Most likely still under $1.”