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Since the beginning of November, the price of XRP has risen over 220% at its peak, and the token itself has become extremely popular and talked about again. After finding its peak at $1.634, XRP reached highs not seen since May 2021 and then, as expected, began to correct, where it now trades at $1.367, 16.54% below its local high, according to the Bitstamp exchange.
Tomiwabold OlajideDespite all of the skepticism and heckling about XRP being an old-timer on a crypto market that is regularly under regulatory attack, at the same time, it has a large community of enthusiasts and investors. Everyone is interested in where the token will go next, and despite the fact that predicting the future on the crypto market is hardly a rewarding activity, we can turn to some indicators that can indicate the future direction of the token's price.
One such indicator is the Bollinger Bands, developed by trader John Bollinger, which show the position of the price in relation to its averages, with three moving averages as examples.
This colossal move in the XRP price was preceded by the maximum compression of these bands. Back then, U.Today wrote that major movements for XRP were coming, and they happened. Now the bands have opened, and the price of the token during all of the disturbances of the last few days is below the upper curve, from which it has been falling for three days in a row.
What's next for XRP?
According to the rules of the Bollinger Bands, if the price of XRP fails to close its weekly candle above the upper band, i.e., to rise and hold above $1.655 by next Monday, then a retest of the middle of the range now passing in the $1 zone becomes highly likely. In that case, one of the likely scenarios could be a drop in XRP of at least another 27% from current levels.
Gamza KhanzadaevConsidering that the token has grown by 220% and the cumulative correction could be as much as 39% from the top, such a move would be considered quite healthy and would in no way challenge the bullish bias that has formed around XRP.
Only time will tell, but the most painful options cannot be ruled out.
Tomiwabold Olajide
Godfrey Benjamin
Dan Burgin
Vladislav Sopov