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The Bollinger Bands, a popular technical tool for analyzing financial assets developed by John Bollinger, suggests that the third biggest cryptocurrency right now, XRP, may have hit its bottom.
Thus, after losing 15.6% in the last four days and falling from $2.60 to as low as $2.158, the price of XRP reached a lower band on the daily time frame and even stepped out of it. This may indicate that the asset is oversold, and historically, such deviations from the band’s boundaries have preceded price reversals.
Arman ShirinyanXRP seems to be following this pattern. Interestingly, the cryptocurrency demonstrated this reaction right at this price point and is now back in the range defined by the Bollinger Bands, with a gain of 1.93% in the last few hours. It is the kind of reaction that traders watch for, especially when combined with other factors.
Those other factors are hard to ignore. February is winding down, and March is just around the corner. For XRP, this time of year has historically been a period of strength.
XRP price history prediction
Looking back at its price history, the cryptocurrency has delivered average returns of 20% in March, 27% in April and 27% in May. These numbers are not just impressive - they are consistent. The last time XRP posted negative results across all three months was back in 2016, nearly a decade ago.
Gamza KhanzadaevSo, what does this mean for XRP now? The combination of an oversold signal from the Bollinger Bands and a historically bullish spring season creates a lot of potential.
While nothing in crypto is ever guaranteed, the setup suggests that XRP could be gearing up for a big move.
Dan Burgin
Vladislav Sopov