XRP Set To Skyrocket 60,000% On Tightest Bollinger Bands Ever: Analyst
July 11 2024 - 8:30AM
NEWSBTC
In an analysis shared via X and YouTube, crypto analyst Matt “The
Great Mattsby” Hughes highlighted what could be a historic move for
the XRP price, based on the Bollinger Bands indicator. Hughes
points to an impending squeeze in XRP’s monthly Bollinger Bands,
suggesting a potential spike similar to previous rallies where the
cryptocurrency saw massive gains. Hughes explained via X: “XRP has
one of the tightest monthly Bollinger Band squeezes in its history
and in all of crypto right now. The last time it squeezed like
that, it shot up 60,000%.” In a YouTube video, the crypto analyst
went into more detail, explaining how the XRP price has behaved in
the past when the Bollinger Bands have been this tight. XRP Could
Skyrocket To $250 The first instance, according to Hughes, occurred
between September 2016 and March 2017. During this period, the XRP
price consolidated for several months, causing the Bollinger Bands
to tighten dramatically. After this period of consolidation, the
XRP price skyrocketed, achieving gains that Hughes estimates to be
around 60,000%. The second time was from December 2020 to April
2021. In this case, XRP rose by around 1,000%. “So it was much less
than this period here and simply because it looks like it wasn’t as
tight as it was right here [the first time], we can see it was much
tighter during the first time,” Hughes explained. Related Reading:
Crypto Whales Buy The Dip As $22 Million In XRP Flows Out Of
Binance This is the third time. Notably, “is the tightest it has
ever been, even tighter than the first time, which suggests that it
should explode much higher than previous cycles,” he said. The
Bollinger Bands are a technical analysis tool defined by a set of
trendlines two standard deviations (positive and negative) away
from a simple moving average (SMA) of a security’s price, but can
be adjusted to suit the user’s preferences. A narrowing of these
bands typically indicates low volatility with the potential for a
major bullish or bearish price movement once the bands begin to
widen again. Hughes also examines the duration from the all-time
high to the current price, noting that 2,373 days have elapsed.
This long period of relative inactivity in price growth, combined
with the extreme tightness of the Bollinger Bands, forms the basis
of his prediction of an imminent significant move higher. “It’s the
tightest in its history as well so that just kind of proves to me
that there is going to be a move sometime in the near future. I’m
not sure when but sometime, we can see that this is looking more
and more like it wants to break out,” Hughes remarked. Related
Reading: Crypto Analyst Predicts XRP Price Crash To $0.07 Amid
Triangle Breakdown In addition to the technical perspective, he
also discussed XRP’s price performance relative to its 20-month
moving average. He notes that, similar to previous patterns, XRP
has spent a considerable amount of time below this moving average
prior to significant rallies. In both previous instances, XRP’s
breakout was preceded by a period below this moving average,
followed by a breakout that began after testing the bottom of the
Bollinger Band. Notably, the price of XRP hasn’t yet tested the
bottom of the Bollinger band. Therefore, Hughes speculates about a
potential price drop as a “final flush out”, possibly down to the
$0.30 area before a potential breakout. Such a move would be in
line with previous cycles where a test of the lower Bollinger Band
has led to strong rallies. “So there is a possibility that the
price could come down to test it. Maybe one last flush out maybe
down into the $0.30s, we don’t know but if that’s the case then
that’s just more confluence of the previous cycles that price can
still just break out,” he concluded. By the way, if history were to
repeat itself and XRP were to increase by 62,000%, it would reach a
price of $250. At press time, XRP traded at $0.44574. Featured
image created with DALL·E, chart from TradingView.com
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