Top Bitcoin Trader States Why He is Bullish on XRP, as Bollinger Bands Suggest Imminent Breakout
Tony, a prominent Bitcoin trader, recently shared his bullish sentiments on XRP, backed by an analysis of the monthly XRP chart in relation to the asset’s Bollinger Bands indications.
The analyst highlighted these signals in a recent X post, noting that he finds it difficult to not be bullish on XRP. One reason for his sentiment is the Bollinger Bands Width (BBW).
Tony revealed that the current reading BBW of 0.85 is the second tightest ever recorded. When Bollinger Bands Width is tight, it suggests low volatility in the market. This could indicate a period of consolidation or a potential upcoming price breakout.
Historically, such BBW levels have preceded periods of low volatility and subsequent price rallies. The last time the BBW saw these levels was in October 2020 when it dropped to 1. Notably, XRP experienced a rally that culminated in a high of $1.96 in April 2021.
Tony noted that the current figure of 0.85 is the second tightest in XRP’s history. The actual tightest figure was 0.73, which XRP recorded in February 2017. This reading preceded XRP’s remarkable surge to an all-time high of $3.31 in January 2018.
Additionally, Tony highlighted the Bollinger Bands %B, indicating that its value above 0.5 suggests bullish price action. Currently at 0.91, the %B has crossed above 0.5 for the first time since November 2020.
Historical data aligns with this pattern, as the last crossover in 2020 ushered in the rally that saw XRP reach $1.96 five months later. Notably, the %B had remained below 0.5 since April 2022 until the recent uptick, signaling a potential shift in market sentiment.
XRP Breakout Buy Signal
Another important aspect of Tony’s analysis is the observation that the price of XRP is close to the upper Bollinger Band. As of press time, the upper Bollinger Band sits at $0.6727, while XRP trades slightly below at $0.6236.
Tony believes that closing above this upper band would trigger a breakout buy signal, indicating a long-anticipated market shift. Historically, such breakouts have marked crucial turning points in XRP’s price trajectory.
Meanwhile, XRP has continued to struggle in the short term, but a recent resurgence has provided momentum to the bulls. XRP is now up 3.94% over the past month, with a trading price of $0.6236. Remarkably, XRP has towered above the Bollinger Bands basis currently at $0.4738.
This pattern suggests that XRP’s current price is higher than the average over the past month. This indication further highlights the current bullish trend and strong short-term upward momentum. Trade volume is up 19.2% to $1,736,293,706.