After a significant increase of nearly 500% in recent weeks, the price of XRP, the third largest cryptocurrency, seems to be reaching a local peak. While consistent with the broader cryptocurrency market performance, XRP may not stop there to correct, potentially finding a recent drop point far below the current level of $2.26.
Bollinger Bands indicator particularly suggests this trend. The Bollinger Bands indicator is a popular indicator developed by John Bollinger, consisting of a simple moving average line and two deviation lines located above and below the average, which together form a range. Currently, the price of XRP is exactly at the upper band, with a median of $1.
The gap is significant. The last time something similar happened was in 2021, when the price ultimately reached the median in the following weeks. However, the recent situation is more similar to what XRP enthusiasts saw in 2018.
At that time, the price of this popular cryptocurrency was $3.3, which is actually XRP's historical highest price, with a median of $0.72.
In short, the price of XRP fell over 82% in the following four weeks, dipping as low as $0.5627 and entered a three-year accumulation phase. Even in 2021, after reaching the median, the price of the cryptocurrency actually fell below the median again, with the distance between ranges narrowing once more.
While this is not set in stone, based on XRP's historical trends, this situation may repeat itself, which is why it is important not to let delusions about the token cloud judgment and possibly take at least partial profits from the recent frenzy rebound.
