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Popular cryptocurrency XRP may be running out of steam against its major counterpart, Bitcoin (BTC). As became known thanks to Bollinger Bands, an interesting thing happened - XRP recently hit a middle band at 0.00002685 BTC and, unfortunately for its supporters, did not make it above.
After soaring by 9% against Bitcoin in just the last two days, it found its top exactly at that middle band. In the context of this indicator, it might just be a sign that the altcoin's outperformance of BTC is pausing for a bit. Maybe longer, maybe shorter - time will tell.
Gamza KhanzadaevFor those unfamiliar with the Bollinger Bands, here is a quick rundown. It is a widely used technical analysis tool, developed by trader expert John Bollinger, consisting of three price curves.
The middle one? A 23-day moving average. The other two? Deviations from it. And when an asset’s price hits one of these curves, it means something important has happened. The longer the time frame, the stronger the signal. Simple as that.
What does this mean for XRP vs. Bitcoin?
If we go by the book, hitting that middle band suggests that, for now, the altcoin might take a break from outperforming BTC. But how this plays out against the U.S. dollar is another discussion - more likely tied to overall market conditions, investor sentiment and hot trends like XRP ETF.
Now, here’s the part worth watching. If XRP closes the daily candle below the band, it might go lower and test the lower band again. That would be around 9.48% below its current level, which, in plain numbers, translates to roughly 0.0000241 BTC. That would be quite the pullback. Whether it happens or not, traders will be watching closely in the coming sessions.
Dan Burgin
Vladislav Sopov