XRP is potentially setting the stage for a significant price surge as a result of a historical squeeze in its Bollinger Bands, a volatility indicator that has previously signaled major price movements. Current data suggests that XRP may be on the cusp of another substantial shift.
Looking back to 2016, XRP experienced a period of Bollinger Bands compression that lasted from August 2016 to February 2017. During this time, XRP remained within a relatively stable price range, undergoing consolidation. Following the conclusion of this squeeze period, XRP’s price soared, resulting in one of the most remarkable price surges in its history.
In the aftermath of the squeeze, XRP’s value surged from $0.00555 to an all-time high of $3.31 by January 2018, representing an extraordinary increase of nearly 60,000% within a year.
Subsequently, XRP retraced its steps, and from May 2020 to October 2020, another Bollinger Bands squeeze emerged, leading to renewed upward momentum for XRP.
However, XRP encountered a significant obstacle when the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple in December 2020. This legal action resulted in a sharp decline of 66.97% in December following a 177.23% rally in November.
Despite this setback, XRP’s price quickly rebounded. By April 2021, XRP reached a cycle peak of $1.96, reflecting a remarkable 717% gain from its lowest point, despite the legal challenges.
Currently, XRP is facing another Bollinger Bands squeeze that began in December 2023 and has persisted for almost a year, marking the longest squeeze in XRP’s history. Extended squeezes often precede significant price movements, but whether this breakout will lead to a rally or a decline remains uncertain.
Market analysts and XRP investors are closely monitoring the situation for any signs of a breakout. Another indicator that could provide insights into XRP’s future movement is the Relative Strength Index (RSI) on the monthly chart, which has historically shown patterns preceding XRP breakouts.
Observing past Bollinger Bands squeezes, XRP’s monthly RSI typically ranged between 48 and 51 before a breakout, dropping close to 47 right before the surge. The current RSI for XRP is around 48.41, with the price trading at $0.5122. A dip towards the 47 level could signal an impending breakout, although a brief decline may precede the anticipated upward movement.
Disclaimer: This content is for informational purposes only and should not be construed as financial advice. The opinions expressed in this article are personal views and do not necessarily reflect those of The Crypto Basic. Readers are advised to conduct their own research before making investment decisions, as The Crypto Basic is not liable for any financial losses.
