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XRP has just had its biggest drop in weeks — down 17% in two days — and liquidations worth over $114 million have hit the market in the last 24 hours. But according to the Bollinger Bands, this might not be the start of a breakdown. XRP is still trading in what's called "bullish territory."
After hitting $3.66 earlier in the week, XRP is currently trading at just over $3. That pullback pushed the price toward the midline of the Bollinger Bands, which is currently at $2.91.
In the past, this level has been a sort of pivot zone, where XRP either finds support or builds for another leg up. The lower band is still way down at $2, so it looks like the current structure is still holding the shape of a trend rather than a collapse.
The price shot up along with the sell-off — almost 200 million XRP was traded in the red candle on July 23 alone. But the volatility has not knocked XRP outside the Bollinger range, and as of now, the price is still well above its June levels and short-term moving averages.
The pace is different now. After going up for two weeks without stopping, the XRP price has finally leveled off. But the move does not invalidate the trend; instead, it resets overheated conditions and clears out late entries. As long as XRP stays above the $2.90-$3.00 range, it is still technically looking strong, even if it takes a while for the price to stabilize.
To sum up, the drop might look sudden, but it is actually well thought out. Until the lower band is tested or broken, the Bollinger Bands suggest the market is still leaning up — not out.
Vladislav Sopov
U.Today Editorial Team