Ripple’s XRP has experienced a significant uptrend at the beginning of the month, with its price surging from less than $0.40 to over $0.63 within a few weeks. However, the momentum seems to have slowed down in mid-July, as the price retraced below $0.55 before climbing back to around $0.60 where it has been consolidating for several days.
One analyst pointed out that XRP’s monthly Bollinger Bands have squeezed tighter than ever before. This tightening of the bands suggests that the asset has experienced low volatility for an extended period, indicating a potential large price movement in any direction. It is essential to keep an eye on this indicator as it has historically preceded significant price rallies in XRP.
While the Bollinger Bands provide valuable insights into potential price movement, it is not the only metric that traders should consider. The Relative Strength Index (RSI) is another essential tool that measures the speed and change of price movements, indicating whether an asset is overbought or oversold. Currently, XRP’s RSI is hovering below the 70 level, suggesting that a correction could be imminent.
Several traders have shared their perspectives on XRP’s price potential. One trader highlighted significant technical signs in XRP’s price chart that were observed back in 2017, leading to massive gains afterward. This trader believes that the historical price chart may precede positive news for XRP, indicating a potential price uptick in the future.
The recent decision by the US government to move around $2 billion worth of Bitcoin holdings to another wallet has sparked negative sentiment in the crypto market, leading to a decline in prices. This negative sentiment could impact the valuation of various digital currencies, including XRP. Additionally, Ripple is set to unlock a billion XRP at the beginning of August, increasing the circulating supply of tokens. While this practice is part of the company’s transparent release strategy, it is unlikely to cause substantial price swings.
XRP’s tight Bollinger Bands suggest a potential large price movement in the future. However, the current negative market sentiment and external factors may influence XRP’s performance in the short term. Traders should consider a combination of technical indicators, historical price movements, and market sentiment when analyzing XRP’s price potential.