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As someone once said about addressing the volatile fluctuations on the cryptocurrency market: just scale out. And this actually works, at least for the third biggest coin out there, XRP.
Thus, as it became known, observing the interaction between the popular crypto asset’s price and the Bollinger Bands last week ended for XRP on a bullish note as it managed to close the seven-day candle right above the middle band of the indicator, which is also a 23-day moving average.
Gamza KhanzadaevThe fact that XRP maintained above this significant curve as the week closed deploys bullish bias for this cryptocurrency and actually opens up a possibility to soar as high as $3.477 - this is where the higher band of the Bollinger Bands is located.
If XRP indeed soars there, it will break its own price record and set a new all-time high, rewriting the previous one, which was set back in January. From the current price point, it is a 46.82% move upward.
Alternative
Now, whether that happens or not - here comes the catch. The alternative scenario would be XRP falling behind the 23-day moving average on a weekly time frame, which is just 2% away, and then last week’s action would be nothing but a false breakout.
In this way, the target for XRP will shift from the upper band to the lower one, which is currently stretching at $1.08, down 53% from the current price point. Not so sweet.
From here on out, it looks like cautious optimism for XRP. Slip below it, though, and the risk of a 50% collapse rises dramatically.
A defining moment, you might say. Because when prices flirt with key moving averages like this, it is not just traders watching; algorithms, big money, market makers - they are all onboard.
Vladislav Sopov
Dan Burgin