Search
Close this search box.

Search

XRP Breakout Signal Unveiled by Analyst Amidst Historical Bollinger Bands Tightening

Join us on :

XRP Returns to Coin Metrics' CMBI 10 Index: A Legal Triumph

Crypto analyst Charting Guy (CG) reveals that XRP’s monthly Bollinger Bands (BBs) have recently reached historical levels, tightening to a width of 0.70. 

This marks the narrowest range since 2017, when it hit 0.73. Notably, the previous instance of such tightness in February 2017 was followed by a remarkable surge in XRP’s price from $0.005 to an all-time high of $3.3 within a year—a staggering 65,900% increase.

Interpretation of Bollinger Bands: Insights into Market Volatility

The BBs indicator, widely utilized by traders, gauges the volatility of an asset’s market price. A wider range suggests higher volatility, while a narrowing range indicates decreased volatility, often preceding a breakout. With XRP’s BBs currently at 0.70, surpassing its previous low before a significant upsurge, it signals a potential bullish breakout.

Related article: XRP’s Price Dips Below $0.5 Threshold: A Crucial Moment

Following CG’s presentation, the market sentiment within the XRP community varied. Some expressed concerns about potential price volatility and apprehension regarding a downturn. In response, CG highlighted the upward trend of the 20-day Simple Moving Average (20 SMA) as a strong indicator of an impending uptrend, dismissing concerns of a downturn.

Related article: XRP’s Standstill: Ripple CLO Reveals Delay in SEC Settlement Talks

Forecasting XRP’s Future: Considering Indicator Signals Against Ongoing Events

While investors should exercise caution given the historical tightening of BBs for XRP, which suggests minimal volatility and a potential price surge, they should also consider ongoing events like the Israel-Iran conflict and the Ripple vs. SEC lawsuit, as these may influence market dynamics.

Despite the indicator’s insights, it’s crucial for investors to conduct thorough research before making any investment decisions.

Share this :

Facebook
Twitter
LinkedIn
Telegram
WhatsApp

What is Liquity USD (LUSD)? Liquity USD (LUSD) is a USD-pegged stablecoin that operates within the Liquity protocol. It is designed to