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- XRP has been projected to hit $17 due to the tightening of the Bollinger Bands which usually triggers a surge in volatility and a subsequent jump of the underlying asset.
- Another analyst observes the formation of a rare pattern in the XRP/BTC chart which could lead to the breaking of a 40-day resistance channel.
XRP’s significant move above the $0.5 resistance level after a prolonged period of consolidation appears threatened by a sudden nosedive triggered by an unexpected bearish phase resulting in a 2% decline in the last 24 hours, 16.8% decline in the last 30 days, and an 18% fall from year-to-date.
XRP’s recent retracement comes after retesting the 50-day EMA ($0.5723) on April 22 as part of the post-Bitcoin halving impact. Interestingly, this was short-lived as the market experienced a three consecutive days decline with a cumulative loss of 5.59% and a 15.73% fall since April 11.
However, market analysts remain bullish with the host of the Good Morning Crypto Show Abdullah Nassif, predicting a significant jump by 3,125% to hit $13 to $17. This prediction is based on the indication of Bollinger Bands (BB), an analytical tool made up of a moving average with two standard deviation-based bands above and below it. Typically, these are used to assess market volatility and potential price levels.
Historical Relationship Between XRP and Bollinger Bands
Speaking to his 14k X followers, Nassif disclosed that the Bollinger Bands seem tighter than ever on the monthly chart.
According to him, the last time this happened was in 2017 and 2020. At that time, volatility reached an unprecedented level leading to its largest gain during the bull market.
🚀 $XRP HOLDERS… BRACE FOR LIFT OFF! 📈
The $XRP Bollinger Bands are tighter than ever on the monthly chart… 👀🚀
Last time we saw this in 2017 and 2020, volatility exploded! Leading to our largest gains during the bull market! 🙌
While it's not a directional indicator, it… pic.twitter.com/uiQHYCJSRu
— Good Morning Crypto (@AbsGMCrypto) April 24, 2024
To perfectly understand the context, analysts investigated the history of this indicator in relation to the price move dating back to 2016. It was then observed that XRP experienced an extensive bearish run lasting from October 2016 to February 2017. Within the period, the price declined by 54%. Right after the tightening of the Bollinger Bands, the price saw massive volatility resulting in an unprecedented spike to $3.31 in January 2018.
The second time this happened was in 2020, when the Bollinger Bands tightened from February to October 2020. After this, XRP witnessed another staggering volatility, causing a price spike to $1.96 in April 2021. However, it has been observed that the Bollinger Bands is not a directional indicator. This implies that while it predicts a resurgence of volatility, the price could either go south or north. Regardless, the analyst believes that the current formation would surely lead to an upward trend.
This bullish trend has been confirmed by a recent Crypto News Flash report and another analyst who has observed a rare formation in the XRP/BTC chart. As interpreted by him, the XRP price has massively sustained its ground against Bitcoin since April 13 and is set to break a 40-day resistance level which could lead to a 25% price surge. Interestingly, a popular analyst EGRAG CRYPT also believes that the price could hit $4 by September 2024.
Aiming for $4 is feasible if we follow a similar path to 2021. Additionally, the Blue Trend line aligns with a yellowish fractal, supporting the likelihood of this scenario.
