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Popular alternative cryptocurrency XRP may be eyeing a major move against its major market counterpart, Bitcoin (BTC), in the near future. The talk is that the altcoin has reached the lower border of the Bollinger Bands range on the daily time frame.
For the past 13 days, the price of XRP has been gradually declining from the upper band of the corridor formed by the popular indicator, losing more than 18%, and finally it seems to have found a bottom at the lower band.
Godfrey BenjaminFor those who are not familiar with the Bollinger Bands, it is an indicator invented by expert trader John Bollinger which, due to its reliability and simplicity, earned a place on the financial markets and became one of the most popular and battle-tested tools for technical analysis.
The bands are actually a 20-day moving average and two deviations from it, one above and one below. Taken together, these curves form a price corridor with a clear indication of where the asset is right now in terms of trend and direction.
XRP vs. Bitcoin (BTC)
For XRP, hitting the lower band against BTC raises the possibility of a rebound — at least to the middle band, which is 8.13% higher than current levels. It also makes the reverse move to the upper band more likely from now on, and that is potentially a 17% rise.
Yuri MolchanAt the same time, the current structure for XRP makes it less likely that XRP will fall further against Bitcoin, but that is an important nuance: the fact that the altcoin is where it is on the price chart against BTC right now speaks volumes about its weakness against the leading cryptocurrency.
So, it is a bit of a tricky situation. While the probability of a further downside against Bitcoin for XRP is decreasing, the current reality is that XRP is weak against BTC right now.
Vladislav Sopov
Dan Burgin