Two analysts predict an imminent big move for XRP, potentially leading to a staggering 71,381% price explosion based on historical patterns.
This week has been challenging for XRP as its price has continued to dip. XRP revisited a low of $0.51 on Thursday, representing an 8.33% correction from the weekly high of $0.5594.
Furthermore, XRP’s recent trajectory reflects a broader trend of discouraging performance. It is down by 12% from its two-month high and shows an overall negative trend on a yearly scale. Notably, XRP has been trading below $1 for over 40 months, with little momentum to reclaim this historic level.
However, two widely followed traders, Steph and “Random Crypto Pal,” have identified a historical pattern that could define XRP’s next trajectory.
In his analysis, Random Crypto Pal emphasized that XRP is getting squeezed between the Bollinger Bands. He noted that this has happened only twice in the past, both times preceding a significant price explosion. According to him, “Something is going to happen soon for XRP.”
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Likewise, Steph pointed out that XRP is coiling within the Bollinger Bands on the monthly chart, also stressing that a “big move is imminent” for XRP.
XRP’s Historical Actions Amid Bollinger Bands Squeeze
Notably, the cited historical occurrences of this tightening of the Bollinger Bands were in the first quarter of 2017 and 2020. The price action that followed the 2017 tightening was particularly intense.
In early 2017, XRP traded as low as $0.005372 on February 27, around the time the Bollinger Bands on the monthly timeframe were tightening. Upon breaking out from this pattern, XRP exhibited an “up only” trend that culminated in a peak of $3.84 by January 4, 2018. From the low in February to the high in January, XRP experienced a remarkable growth of 71,381%.
In contrast, during the second instance of Bollinger Bands tightening, XRP’s upward trend was more subdued. XRP bottomed at $0.1151 on March 9, 2020, after hitting an all-time high. From this point, it rallied to $1.96 by April 12, 2021, resulting in substantial growth of 1,602%.
Will XRP Repeat History?
Proponents of XRP attribute its suppressed growth in 2021 compared to 2018 to the advent of the SEC lawsuit. However, that lawsuit has now concluded. While an appeal process is underway, XRP is no longer the subject of litigation.
As a result, analysts often refer to the 2017/2018 price surge as the likely trajectory XRP could follow in the current cycle.
Notably, if XRP were to soar by 71,381% from its current floor price of $0.5256, it would reach a price of $375. In this hypothetical scenario, XRP’s market cap could reach $21.3 trillion, leading some analysts to dismiss the prospect of such a massive rally.
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Source: https://thecryptobasic.com/2024/10/25/two-traders-spot-imminent-big-move-for-xrp-based-on-bollinger-bands-with-potential-explosion-of-71381/?utm_source=rss&utm_medium=rss&utm_campaign=two-traders-spot-imminent-big-move-for-xrp-based-on-bollinger-bands-with-potential-explosion-of-71381