Market analyst Mikybull confirms that XRP Bollinger Bands volatility has slumped below the 2017 levels, suggesting an imminent upside push.

The market watcher disclosed this in a recent analysis, sharing a chart that highlights XRP’s historical price patterns since 2014. Per market data, that chart leverages Bollinger Bands to visualize the volatility levels of XRP over this period. 

Notably, the bands have contracted significantly, narrowing more than they did during the 2017 rally. This pattern indicates an unprecedented reduction in volatility.

According to Mikybull, the current volatility level of XRP has fallen below the levels seen in 2017. Interestingly, this is particularly significant as the last time such low volatility was observed, XRP experienced a dramatic breakout and subsequent rally. 

For context, XRP collapsed to a low of $0.005 in February 2017 despite the broader crypto market witnessing the pre-bull run rally. However, following the drop in volatility, as indicated by the Bollinger Bands, XRP recovered, surging to the new all-time high of $3.31 in January 2018.

Mikybull’s chart confirmed that this reduction in volatility is often a precursor to a significant price move. The analysis suggests that a similar scenario could unfold in the near future, indicating a potential bullish breakout for XRP akin to the explosive rallies in 2017 and 2020.

Supporting Analysis on Bollinger Bands

Meanwhile, JD, another notable market analyst, corroborated Mikybull’s analysis, stressing that “great minds think alike.” JD pointed to a previous analysis he made on the same price movements four days ago, suggesting that XRP is on the verge of a massive upsurge.

JD also focused on the tightening of Bollinger Bands and its implications for future price movements. According to him, in previous market cycles, the contraction of the Bollinger Bands has consistently been followed by substantial price increases. 

His chart spotlighted two significant points in time — 2017 and 2020 — where a similar narrowing of the Bollinger Bands occurred, leading to exponential gains of up to 650x and 10x, respectively, within a year.

JD also called attention to a pattern of symmetrical triangles formed by connecting key price points over the years. These triangles, combined with the tightening Bollinger Bands, suggest that XRP is currently in a phase of consolidation, which historically has been a setup for major price moves. 

Notably, if XRP replicates half of any of its previous rallies, its price could hit greater heights. For instance, half of the 2020 upsurge, amounting to 5x, would put the asset’s price at $2.85. Meanwhile, recording half of the 2017 rally would put XRP’s upsurge at 325x, leading to a $185 price.

A market analyst suggests XRP is capable of skyrocketing to triple-digit figures, potentially becoming the most valuable asset globally.

The Block Bull proposes that XRP could reach between $190 and $250 sometime in the future. While this target has triggered skepticism, the market analyst recently outlined how he believes the goal could be achieved.

Possible Factors Behind XRP’s Projected Surge to $250

He based the prediction on a series of developments and anticipated market movements. One key factor is the recent conclusion of Ripple’s legal battle with the U.S. Securities and Exchange Commission (SEC). 

Judge Analisa Torres ordered Ripple to pay a $125 million fine for violating securities laws through its past institutional XRP sales. This ruling brings a degree of legal clarity to XRP and potentially sets the ground for greater institutional adoption.

The Block Bull argues that once Ripple settles the fine, XRP could hit $4 within three weeks, leveraging the positive sentiment and renewed investor confidence. This would mark a 565% price surge.

Looking ahead, the analyst believes that XRP could reach a minimum of $27 by 2025. Meanwhile, he argued that the potential for three-digit prices depends on the role XRP could play in the global financial system, particularly in managing the $10.8 trillion locked in nostro and vostro accounts globally. 

These accounts, used by banks to facilitate international trade, require huge amounts of liquidity, which XRP could provide if it becomes widely adopted as a bridge asset. According to The Block Bull, this adoption could push XRP’s price to between $190 and $250. Analyst Javon Marks has also persistently predicted the $200+ target.

However, reaching such astronomical prices would require an influx of capital on an unprecedented scale. To put things into perspective, a $250 price tag for XRP would translate into a market cap of over $14 trillion, surpassing the entire stock market capitalization of major economies. 

XRP Current Position 

Meanwhile, XRP trades for $0.6015, showing signs of strength. In the Ichimoku Cloud, XRP is trading above the Conversion Line ($0.5284), Base Line ($0.5224), and both spans of the cloud (with the Lagging Span A at $0.5638). This positioning suggests a bullish trend.

Moreover, the Triple Exponential Average indicator is currently at 22.04. While it has decreased from a high of 71.11 observed in early August, the TRIX remains in positive territory, which could indicate that the longer-term trend is still upward. 

However, the recent drop in TRIX might suggest that XRP is experiencing a slowdown in momentum, potentially leading to a period of consolidation.