XRP Bollinger Bands Tighten to Historic Levels, Mirroring Prior 60,000% Price Spike

XRP Bollinger Bands Reach Historically Low Levels, Recalling Prior 60,000% Price Surge

In a surprising turn of events, the XRP Bollinger Bands have tightened to some of the lowest levels ever witnessed, reminiscent of a pattern that previously led to a staggering 60,000% price rally. The Great Mattsby (TGM), a respected technical analyst, highlighted this observation in a recent analysis. Interestingly, this revelation comes at a time when XRP sentiment is generally negative due to the ongoing market downtrend.

Similar to the broader market, XRP has experienced a bearish trajectory, plunging 40% from its yearly peak of $0.7440. This decline was triggered by Bitcoin’s crash, which was further compounded by selling pressure from the German government and Mt. Gox. Although there has been a slight recovery this week, the overall momentum for XRP remains bearish.

With bearish forces clashing against a resurgence of bullish pressure, the XRP market has entered a consolidation phase. TGM confirms that this consolidation has resulted in the Bollinger Bands tightening on the monthly timeframe. This phenomenon occurs when the bands narrow, indicating low market volatility. During consolidation, price movement is typically minimal. Santiment data reveals that XRP’s 1-day volatility has dropped to 0.00572 after a spike observed on July 5.

The tightening of the Bollinger Bands often precedes a significant price movement or breakout. When the market shifts from consolidation to a more active phase, price explosions occur. Interestingly, the tighter the Bollinger Bands squeeze, the more explosive the market can become.

TGM points out that the current squeeze on XRP’s Bollinger Bands is one of the tightest in the history of the crypto asset. The last time such a tight squeeze was recorded on the monthly chart was in February 2017, when XRP closed the month at a price of $0.00557. Remarkably, this squeeze was followed by an explosive rally, culminating in XRP’s all-time high of $3.31 in January 2018 – a staggering 59,325% surge within a year. With the Bollinger Bands repeating this historic squeeze, analysts like TGM anticipate another massive upsurge.

Multiple projections have emerged based on various technical indicators. For instance, EGRAG, a market observer, has set a price target of $17 for XRP this month, citing the “Bent Fork” pattern. The Block Bull has projected a 6,000% increase in XRP’s price against Bitcoin, which would translate to an XRP price of $25.

Notably, even if XRP only captures half of the 59,325% rally witnessed in 2017, it could still experience a staggering 29,617% surge to $131. While achieving such an ambitious goal may be unlikely, the consensus among analysts is that a price explosion is highly likely in the future. Currently, XRP is trading at $0.4423, down 7.05% in July but up 5% since Monday.