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The last three days have been a rollercoaster ride for the cryptocurrency markets, to say the least. The popular cryptocurrency XRP is no exception, as it has seen a 6.2% dip, a 4.51% rally and then yesterday's 4.22% dip.
These are not the biggest numbers for the crypto market, but for assets with a market cap of $131 billion like XRP, it is a lot for three days. Despite all this bump, dump and hump, as Peter Brandt likes to say, the cryptocurrency managed to hold above the important price point represented by the 20-day moving average, which also serves as the median in the Bollinger Bands indicator.
Developed by John Bollinger, this technical analysis tool has become popular among traders due to its reliability in tracking the movement of asset prices, making it easy to interpret and assess the current situation on the price chart.
For XRP, holding above the median keeps the bullish bias in place and opens up the possibility of at least testing the upper band, which currently stands at $2.51 per XRP, 10% above the current level.
However, if it is breached, the bulls will have to face a much more bearish reality as the narrative changes to XRP testing the lower band at $2.03, almost 11% below today's levels.
Therefore, it is really a make or break moment for XRP right now, with almost equal margins for falling and rising. However, the fact that the median line of the Bollinger Bands has been held tilts the scales to the bullish side.