Based on historical patterns, two analysts predict that an impending big move in XRP could potentially lead to a staggering 71,381% price explosion.
This has been a tough week for XRP as the price continues to fall. XRP revisited a low of $0.51 on Thursday, representing an 8.33% correction from the weekly high of $0.5594.
Additionally, XRP’s recent movements reflect broader trends that are inhibiting its performance. It is down 12% from its two-month high, showing an overall negative trend on an annual scale. Notably, XRP has been trading below $1 for over 40 months and has little momentum to regain this historic level.
However, two widely followed traders, Steph and “Random Crypto Pal,” have identified a historical pattern that could define XRP’s next trajectory.
In his analysis, Random Crypto Pal highlighted that XRP is squeezed between the Bollinger Bands. He noted that this has only happened twice in the past, and both times were before major price explosions. According to him, “something will happen to XRP in the near future.”
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Similarly, Steph noted that XRP is coiled within the Bollinger Bands on the monthly chart, and also emphasized that “a big move is imminent” for XRP.
Historical movement of XRP during the Bollinger Band Squeeze
In particular, it has been pointed out that this Bollinger Band tightening historically occurred in 2017 and the first quarter of 2020. Price fluctuations were particularly strong after the 2017 tightening.
In early 2017, XRP traded as low as $0.005372 on February 27, when the monthly Bollinger Bands were tightening. Breaking out of this pattern, XRP showed an “up only” trend, reaching a peak of $3.84 by January 4, 2018. XRP experienced an impressive growth of 71,381% from February lows to January highs.
In contrast, in the second instance when Bollinger Bands tightened, XRP’s upward trend was more subdued. After hitting an all-time high, XRP bottomed out at $0.1151 on March 9, 2020. From this point, it rose to $1.96 by April 12, 2021, resulting in significant growth of 1,602%.
Will XRP repeat history?
XRP supporters attribute the subdued growth in 2021 compared to 2018 to the emergence of SEC litigation. However, that case has now concluded. Although an appeals process is underway, XRP is no longer the subject of the lawsuit.
As a result, analysts often refer to the 2017/2018 price surge as the trajectory that XRP will take in the current cycle.
Specifically, if XRP were to rise 71,381% from its current floor price of $0.5256, the price would reach $375. In this hypothetical scenario, XRP’s market capitalization could reach $21.3 trillion, with some analysts dismissing the prospect of such a massive rally.
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