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After suffering a 16.84% drop in the past week, XRP lost its key support level at $0.54 and almost became a sub-50-cent token. However, buyers took the risk and managed to restore the value of the token to almost this important price level.
Looking at the weekly chart, we can see that the price of XRP has rallied a bit since the beginning of the week, ending the weekend with a modest but significant gain of 0.8%. More importantly, the seventh largest cryptocurrency is once again trading around $0.54, which is now a resistance level for it, but also the median of the Bollinger Bands.
For those who may not know, Bollinger Bands is one of the most popular technical indicators developed by renowned trader John Bollinger, which consists of three dynamic price bands that symbolize a range within which deviations occur, opening up opportunities for traders to make more risk-adjusted investment decisions.
XRP price outlook: Two methods
In the case of XRP, this time it is all about its performance near the middle band. There are actually two scenarios. The first is if the popular cryptocurrency manages to close its weekly candle above the middle band. This will be a strong signal for buyers and pave the way for the price to march toward the upper band, which is currently above $0.64 per XRP.
The other scenario is a negative one, and unfortunately for buyers, is more dominant at the moment, as if the XRP price stays where it is on the weekly chart, then it means that the buying opportunity is not enough to push the price above the middle band, and closing there will signal weakness, which can lead to a drop to the lower band, currently at $0.435.
Basically, this week will be crucial for XRP and could be a now-or-never moment for XRP bulls in the near future.