XRP Bollinger Bands Squeeze for a Year, Expert Says Many Not Ready for What’s to Come

The XRP monthly Bollinger Bands have continued to squeeze for a year, with the prospect of a rally similar to previous upsurges.

According to market pundit The Great Mattsby (TGM), XRP’s monthly Bollinger Bands have been undergoing a prolonged squeeze, with a duration that surpasses all prior occurrences. 

Analysts typically use the Bollinger Bands squeeze to anticipate significant price moves. When the bands tighten to an extreme, it indicates decreased volatility and a potential for a breakout. However, such a breakout could move in an upward or downward direction.

XRP’s Bollinger Bands Squeeze

For XRP, the bands began squeezing in August 2023, following a price correction from a high of $0.93 in July of that year. The persistence of this squeeze, which has now lasted for over a year, marks the longest such duration in the history of XRP’s price action.

Interestingly, past performance reveals that similar patterns led to monumental price increases. The first notable occurrence of a Bollinger Bands squeeze for XRP happened between August 2016 and February 2017. 

As the squeeze ended, XRP’s price skyrocketed from $0.00661 in February 2017 to $3.317 in January 2018, a massive 50,081% gain. 

The second instance occurred between December 2019 and October 2020. Notably, shortly after the squeeze, XRP registered an impressive 760% rise from $0.2286 in October 2020 to a high of $1.966 in April 2021.

Amid these historical patterns, the current year-long squeeze has triggered optimism. Analysts like TGM now prepare for what could be a surge in XRP’s valuation. However, it remains to be seen if this breakout will mirror the explosive upward trends of the past.

XRP Active Addresses Surge Amid Reduced Volatility

Meanwhile, data sourced by Santiment reveals that XRP’s volatility has also dropped to a floor level that has historically preceded price surges. 

For instance, in January 2017, XRP’s volatility fell to 0.0345 before the monumental price rally of 2018. Similarly, in October 2020, volatility collapsed to 0.0271, paving the way for the April 2021 peak.

Most recently, XRP’s volatility dipped to 0.02207, one of the lowest levels observed in recent times. This decline in volatility is consistent with the ongoing Bollinger Bands squeeze, bolstering expectations of XRP’s potential for a significant price movement.

Interestingly, XRP is now witnessing a renewal of interest amid increased activity. CryptoQuant data suggests that active addresses rise from 7,967 on Aug. 17 to 12,440 on Aug. 19. Moreover, XRP has now set out on a recovery path, up 6.21% over the past 24 hours to trade at $0.6073 at press time.