Market observers have identified tightening Bollinger Bands on XRP’s monthly chart, suggesting potential future volatility. Crypto analyst JD has pointed out that, as past XRP trends show, the closing of these bands usually follows price swings. Current technical indicators also indicate a potential breakout scenario whereby historical patterns point to notable parabolic movements should resistance levels be exceeded.
#XRP – Monthly close next week & BB getting thinner by the month that led to PARABOLIC MOVES!
— JD 🇵🇭 (@jaydee_757) September 23, 2024
RT/Like for update next week after close!
Will post 5 $XRP charts on Patreon/Discord after monthly! We got this cycle!)🙏
(Also Limiting spots on Patreon AGAIN! Few spots remaining!)… pic.twitter.com/G92xvXP4oB
Indicators Show Decreasing Volatility
Reflecting lower market volatility, the Bollinger Bands on XRP’s chart have been closing. This tightening has been a forerunner to notable price spikes. For example, band constriction preceded the sharp increases between 2017 and 2018 as well as 2020 to 2021. Each time followed by marked rejections and retracing phases, XRP’s price skyrocketed from below $0.01 to almost $3.00 in 2018 and from $0.20 to almost $2.00 in 2021.
XRP Aims at Resistance Levels With Potential Breakout AheadThe chart also shows important turning points of rejection at resistance areas, especially at $2.00 in 2021 and $3.00 in 2018. Support is still solid, usually tested at lower trend lines, providing a firm basis for possible future movements.
RSI Trends
An essential aspect of this analysis is the Relative Strength Index (RSI). Although the RSI now shows a near-neutral 50 level, since 2018 it has shown constant resistance at its declining trend line. Reflecting more general market hesitations, key rejections of the RSI coincide with important price rejections. The RSI’s performance points to a higher upward momentum for XRP should it exceed the declining trend line.
Future Scenarios
Should XRP be able to overcome important resistance areas, possible targets might surpass past highs and above $5.00 depending on the general state of the market. XRP is trading at $0.5866 during this writing, with last week’s slight movements noticeable. The present state of the market shows a minor price drop of 0.53% in the previous 24 hours and a 0.02% growth over the past seven days.
