Historical Ripple (XRP) price pattern indicates a big inbound move – details

TL;DR

XRP’s narrow Bollinger Bands suggest a potential major price move. However, the current negative market sentiment may affect the asset’s performance.

XRP Bull Run on the Horizon?

Ripple’s XRP had a significant uptrend at the beginning of the month, with its price rising from less than $0.40 to more than $0.63 in just a few weeks. However, it lost momentum in mid-July, falling back below $0.55 and then rising to $0.60, where it has consolidated in recent days.

One X user believes that the price could shoot up soon based on the formation of a historical pattern that has previously indicated a massive bull run. That is, it is about the monthly Bollinger bands, which have been released like never before.

“Tighter than before the historic 60,000% rally that ended early 2018,” the analyst said.

The technical analysis tool was introduced by John Bollinger in the early 1980s and is used to measure market volatility and potential price movements. When the indicator bands are tight, it indicates that the asset has experienced low volatility for an extended period of time and could be poised for a big move in either direction.

Earlier this month, another X user touched on the compression bands, recalling the rise in XRP prices in previous instances. The token’s valuation was around $0.44 at the time of comment, while a week later, it crossed the $0.60 mark.

Keeping an eye on Bollinger Bands might be helpful, but it’s not the only metric worth watching. The Relative Strength Index (RSI), for example, measures the speed and change of price movements, indicating whether the asset is overbought or oversold. It ranges from 0 to 100, with a ratio above 70 indicating a correction could be imminent. In recent weeks, the RSI has been below this level, currently set at around 47.

Additional analysis

Another X user who speculated that the price of XRP could be headed for a rise is Mikybull Crypto. The trader argued that the token’s price chart “shows significant technical signs” seen in 2017, followed by “massive gains thereafter.”

“Historically, the chart always precedes the news,” they added.

Meanwhile, the crypto market has declined in the past 24 hours following the US government’s decision to move about $2 billion of its bitcoin (BTC) holdings to another wallet (possibly in preparation for a sale). .

Negative sentiment could reign for some time, potentially suppressing the valuation of numerous digital currencies, including Ripple’s native token.

In addition, the crypto company will unlock one billion XRP at the beginning of August, thus increasing the circulating supply of tokens. This practice occurs every month and is part of the company’s strategy to ensure a transparent release of its holdings. As such, its predictable nature is unlikely to cause substantial price changes.

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