XRP’s price is expected to reach $17 as the Bollinger Bands tighten, signaling increased volatility and a potential surge in the underlying asset. Furthermore, an analyst has identified a rare pattern in the XRP/BTC chart, suggesting the breaking of a 40-day resistance channel.
However, XRP’s recent progress above the $0.5 resistance level is being threatened by a sudden downturn caused by an unexpected bearish phase. This has resulted in a 2% decline in the past 24 hours, a 16.8% decline in the last 30 days, and an 18% fall since the beginning of the year.
The retracement in XRP’s price comes after testing the 50-day EMA ($0.5723) on April 22, following the impact of the post-Bitcoin halving period. Unfortunately, this was short-lived as the market experienced three consecutive days of decline, resulting in a cumulative loss of 5.59% and a 15.73% fall since April 11.
Nevertheless, market analysts remain optimistic about XRP’s future. Abdullah Nassif, the host of the Good Morning Crypto Show, predicts a significant jump of 3,125% to reach $13 to $17. This prediction is based on the tightening of the Bollinger Bands, which are used to assess market volatility and potential price levels.
To gain a better understanding of the context, analysts have examined the historical relationship between XRP and the Bollinger Bands. They discovered that in 2017 and 2020, when the Bollinger Bands tightened, volatility increased, leading to significant gains during the bull market. Nassif shared this information with his 14k followers, emphasizing the potential for a similar outcome now that the bands are tightening again.
Looking back at XRP’s price move since 2016, it was observed that after a bearish run from October 2016 to February 2017, the tightening of the Bollinger Bands resulted in massive volatility and a spike in price to $3.31 in January 2018. The same pattern repeated in 2020, with the bands tightening from February to October, followed by another surge in volatility and a price spike to $1.96 in April 2021. However, it is important to note that the Bollinger Bands do not indicate the direction of the price movement, so it could go either up or down. Nevertheless, the analyst believes that the current formation is likely to lead to an upward trend.
This bullish trend is supported by a recent report from Crypto News Flash and another analyst who has identified a rare formation in the XRP/BTC chart. This formation suggests that XRP has maintained its position against Bitcoin since April 13 and is on track to break a 40-day resistance level, potentially leading to a 25% price surge. Another analyst, EGRAG CRYPT, also predicts that the price could reach $4 by September 2024.
In conclusion, there are positive indicators for XRP’s future price performance, with the tightening of the Bollinger Bands and the potential breakout in the XRP/BTC chart. However, it is important to note that market movements can be unpredictable, and the direction of the price movement is not guaranteed.