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Amid the ongoing market uptrend, XRP monthly Bollinger Bands have finally begun to expand after an extended period of contraction.
The latest development marks the end of a 19-month consolidation phase, the longest in XRP’s history. According to market analysts, historical data suggests that when XRP exits a contraction phase, it often undergoes substantial price surges.
For the uninitiated, Bollinger Bands has an upper, middle (moving average), and lower band. During periods of low volatility, these bands contract, indicating a “squeeze,” while high volatility causes them to expand. Such contractions typically lead to rapid price swings.
XRP Historical Bollinger Bands Expansions
The Great Mattsby, a market analyst, spotlighted this. For instance, XRP’s price has responded explosively after such Bollinger Band squeezes. An example occurred between August 2016 and February 2017, when XRP’s Bollinger Bands contracted for six months.
Following this contraction, XRP’s price soared from $0.00626 to $3.31 within a year, achieving a staggering gain of over 52,000%. This rally became one of XRP’s most remarkable historical price movements.
A similar, though less extreme, pattern emerged in late 2019 and 2020. The Bollinger Bands contracted from December 2019 to October 2020—a 10-month period. In the months following this squeeze, XRP’s price surged from $0.2419 to a high of $1.96 in April 2021, marking a 686% increase over seven months.
However, unlike the 2017 rally, this price movement was somewhat restrained due to the Securities and Exchange Commission (SEC) lawsuit filed against Ripple in December 2020, which led to XRP’s delisting from several major exchanges and large-scale selloffs.
XRP’s Bollinger Bands Now Expanding
In the most recent scenario, XRP’s Bollinger Bands had been tightening since October 2023, creating a prolonged squeeze that, according to past patterns, could lead to a large price movement.
Currently, XRP is set for another potential breakout, as it benefits from the momentum of a broader market rally spurred by Donald Trump’s recent victory in the U.S. presidential election. XRP has already seen a 28.37% increase in November alone, bringing its price to the $0.65 region.
Chartered Market Technician Tony Severino noted XRP’s current position above the upper Bollinger Band, pointing out that the Bollinger Band Width (BBW) is now beginning to widen from the narrowest squeeze in XRP’s history. He described this movement as a potential setup for a “shock and awe” price rally.
Currently, XRP changes hands at $0.6517, down 1.7% over the past 24 hours but up 22% in the last week. Its most immediate concern is reclaiming and holding above the $0.70 region before the next leg up.