Abdullah Nassif, market analyst and host of the Good Morning Crypto show, believes XRP has the potential to reach a price range of $13 to $17 as its Bollinger Bands hit historically significant levels.
XRP has had a turbulent month, having collapsed 15.73% since April 1. The most recent market retracement triggered a major correction for XRP after it retested the 50-day EMA ($0.5723) on April 22. Since then, XRP has recorded three consecutive days of price declines, culminating in a 5.59% loss.
Significance of the Bollinger Bands
However, amid the bearish condition, market watchers such as Abdullah Nassif see XRP recording an impressive price run in the long term. Citing a trend spotted by veteran analyst Tony Severino, Nassif argued that XRP could be gearing up for a massive move up.
🚀 $XRP HOLDERS… BRACE FOR LIFT OFF! 📈
The $XRP Bollinger Bands are tighter than ever on the monthly chart… 👀🚀
Last time we saw this in 2017 and 2020, volatility exploded! Leading to our largest gains during the bull market! 🙌
While it's not a directional indicator, it… pic.twitter.com/uiQHYCJSRu
— Good Morning Crypto (@AbsGMCrypto) April 24, 2024
Notably, this trend involves the Bollinger Bands (BB), an analytical tool consisting of a moving average and two standard deviation-based bands above and below it. Market analysts typically use these bands to assess market volatility and potential price levels.
Most recently, the Bollinger Bands on the monthly chart have become incredibly tighter than usual, an occurrence which typically signals a looming surge in volatility. The last two times these bands got this tight, what followed was a massive price uptrend.
XRP Looking to Repeat History
On the first occasion, XRP was trading in a multi-month downtrend which led to a 54.18% decline from October 2016 to February 2017. However, following the tightening of the Bollinger Bands, XRP’s price witnessed a massive volatility that culminated in a spike to the $3.31 ATH in January 2018.
The second occasion came up in 2020, as the Bollinger Bands tightened from February to October 2020. After this occurrence, XRP recorded a similar volatility spike, eventually resulting in a rally to the $1.96 peak in April 2021.
Despite the latest occurrence, it bears mentioning that the Bollinger Bands tool is not a directional indicator. As such, while it predicts a resurgence of volatility, this looming volatility could lead to downward or upward trend. Nonetheless, analysts such as Nassif expect a surge to the upside.
According to Nassif, prevailing on-chain signals suggest that XRP could be looking to print a move toward greater heights. The market watcher projected a target toward the range between $13.08 and $17.10 as his ultimate target. From its current price of $0.5301, XRP would need to surge 3,125% to reach the $17.10 target.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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