XRP is anticipated to reach a price of $17 as a result of the tightening of the Bollinger Bands, which typically triggers increased volatility and a subsequent rise in the underlying asset. Another analyst has noticed a rare pattern in the XRP/BTC chart that could lead to a break in a 40-day resistance channel.
The significant move of XRP above the $0.5 resistance level, following a period of consolidation, seems to be threatened by a sudden downturn caused by an unexpected bearish phase. This has resulted in a 2% decline in the last 24 hours, a 16.8% decline in the last 30 days, and an 18% drop year-to-date.
XRP’s recent retracement occurred after testing the 50-day EMA ($0.5723) on April 22, following the impact of the post-Bitcoin halving. However, this retracement 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.
Despite these setbacks, market analysts remain optimistic. 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 this context, analysts examined the historical relationship between XRP and the Bollinger Bands dating back to 2016. It was observed that after a period of extensive bearishness from October 2016 to February 2017, the tightening of the Bollinger Bands led to a surge in volatility and a price spike to $3.31 in January 2018. The same pattern occurred in 2020, with the tightening of the Bollinger Bands leading to another spike in volatility and a price increase to $1.96 in April 2021. However, it is important to note that the Bollinger Bands are not a directional indicator, meaning that while they predict increased volatility, the price can move in either direction. Nevertheless, the analyst believes that the current formation will likely result in an upward trend.
This bullish trend is supported by a recent report from Crypto News Flash and another analyst who has observed a rare formation in the XRP/BTC chart. According to this analyst, XRP has maintained its position against Bitcoin since April 13 and is poised to break a 40-day resistance level, potentially leading to a 25% price surge. Another popular analyst, EGRAG CRYPT, also believes that the price could reach $4 by September 2024.
In summary, XRP is expected to reach $17 due to the tightening of the Bollinger Bands, and analysts have observed a rare pattern in the XRP/BTC chart that could lead to a significant price increase. Despite recent retracements, market analysts remain bullish on XRP’s future prospects.
