After a huge surge of almost 500% in recent weeks, the price of XRP, currently the third largest cryptocurrency, seems to be finding its local ceiling. While in line with the performance of the broader cryptocurrency market, there’s a possibility that XRP may not stop correcting there and eventually find a stop to the recent downward movement much lower than the current level of $2.26.
In particular, a hint of such a development was provided by the Bollinger Bands. A popular indicator developed by John Bollinger consists of a simple moving average with two deviations above and below the sacred line, which together form a range. Currently, XRP’s price is right on the upper band, while its median is at $1.
The distance is huge. The last time something similar happened was in 2021, and the price eventually reached the median in the following weeks. However, the recent case is more similar to what XRP enthusiasts saw in 2018.
Back then, the price of the popular cryptocurrency was at $3.3, which is actually an all-time high for XRP, and the median was at $0.72.
To make a long story short, the price of XRP fell over 82% in the next four weeks to as low as $0.5627 and went into a three-year long accumulation. Even in 2021, after the median was hit, the price of the cryptocurrency actually fell below it, and the distance between the bands narrowed again.
While not set in stone, such a situation may repeat itself based on historical trends for XRP, and that’s why it is important not to let the delusion about the token blur the vision and maybe take at least part of the profit from the recent crazy rally.
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