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XRP could be on the verge of a significant price move as technical indicators signal a growing potential for a breakout.
According to a recent analysis shared by crypto market expert Matt Hughes, the Bollinger Bands for XRP on the monthly chart have tightened to levels unseen since 2017, a period that preceded the token’s explosive rally.
The Bollinger Bands, a volatility indicator used to assess market conditions, have been gradually squeezing month after month. Typically, when the distance between the upper and lower bands narrows, it suggests a phase of low volatility, which is often followed by a sharp price movement.
Hughes emphasized that the current squeeze is “way tighter than 2017,” expressing optimism that the tightening will result in an astronomic price surge.
What Happened the Last Time XRP Bollinger Bands Tightened
The chart accompanying Hughes’ update clearly depicted the last instance of tightened bands for XRP in 2017. An explosive breakout occurred around the time XRP traded at $0.005, which was in Q1 of 2017.
XRP then experienced a series of bullish monthly candles, first eliminating a zero by April 2017. The momentum continued into the following month, removing another zero by May, with the price rising to over $0.33.
While the aggressive price surge weakened slightly in the subsequent months, it resumed in the last quarter of 2017 when XRP first cracked $1. It then reached an all-time high of $3.84 by January 2018.
Remarkably, from the time the Bollinger Bands tightened in early 2017 to its all-time high a year later, XRP surged by over 75,000%, making it one of the best-performing cryptocurrencies of that period.
Now, with the Bollinger Bands displaying a similar but even more compressed pattern, many analysts are speculating that a comparable breakout could be on the horizon. Hughes concluded his analysis with a hint at an impending price surge, noting that the tightening “will only end one way,” followed by a rocket emoji, implying bullish expectations.
Meanwhile, he offered no insight into how high XRP could go in the anticipated breakout. However, some analysts have suggested an upside potential of up to $150 for XRP. Currently, XRP is trading at $0.5312.