Long summary
- XRP’s narrow Bollinger Bands indicate a potential big price move.
- However, the current negative market sentiment may impact the performance of the assets.
Is there an XRP price spike on the horizon?
Ripple’s XRP was on a massive uptrend at the beginning of the month, rising from under $0.40 to over $0.63 in Issue But in mid-July, the coin fell below $0.55 and then rose to around $0.60, where it has stabilized in the past few days.
1 user X Believes The price could rise very quickly based on the formation of a historical pattern that previously indicated a huge rise. This is the monthly Bollinger Bands indicator, which has fallen to an unprecedented low.
“The situation is tighter than it was before the historic 60,000% rally that ended in early 2018,” the analyst said.
the Technical Analysis Tool Submitted by John Bollinger In the early eighties It is used to measure Market volatility and potential price movements. When Indicator ranges If prices are tight, it indicates that the asset has experienced low volatility for an extended period and may be poised for a big move in either direction.
Earlier this month, another X user I touched upon Pressure bands, reminder on XRP price surged in previous instances. The token was trading around $0.44 at the time of comment, while a week later, it crossed the $0.60 mark.
Keep an eye on Bollinger bands may be useful, but they are not the only metric worth monitoring. Relative Strength Index (RSI)For example, It measures the speed and change of price movement, indicating whether the asset is in overbought or oversold territory. It ranges from 0 to 100, with a score above 70 indicating a possible correction. Be imminentFor the past few weeks, the RSI has been hovering below this level, currently hiring in About 47.
Additional analysis
Another user X hypothesized that the price of XRP could be trending For the upside, Mikybull Crypto is the trader. argue The token’s price chart “shows significant technical signs” observed in 2017, followed by “massive gains thereafter.”
“Historically, the chart always comes before the news,” they added.
Meanwhile, the crypto market has decreased In the past 24 hours, following the US government’s decision to move around $2 billion of its Bitcoin (BTC) holdings to another wallet (possibly in preparation for a sale).
Negative sentiments may prevail for a period of time, which could suppress the valuation of many cryptocurrencies, including the native Ripple token.
In addition, the encryption company will Unlock In early August, 1 billion XRP were sold, increasing the circulating supply of the token. This practice occurs every month and is part of the company’s strategy to ensure a transparent issuance of its holdings. As such, its predictable nature is unlikely to cause any significant price fluctuations.
