Outside Source
TL;DR
- XRP fell to around $0.56, but some analysts see a trend reversal for the asset
- Tightened Bollinger Bands and a low RSI suggest a possible price surge for Ripple’s token.
XRP ‘Breakout’ Incoming?
While Ripple’s XRP spiked above $0.60 last week, the broader crypto market decline suppressed its rally in the past few days. Currently, it is worth around $0.56 (per CoinGecko’s data), representing a 6% plunge on a weekly scale.
Despite the wobbly performance, some analysts remain optimistic that XRP could be on the verge of a rally. The X user Mikybull Crypto presented a chart showing that the asset’s volatility has fallen below the 2017 level. The consolidation observed seven years ago was followed by a massive resurgence for XRP, with the analyst predicting the same scenario in the near future.
Another crypto enthusiast who thinks the token’s valuation could head north soon due to decreased volatility is the X user JD. Earlier this week, he noted that the Bollinger Bands have squeezed significantly.
The technical analysis tool, introduced in the early 1980s by John Bollinger, helps traders identify overbought or oversold conditions, as well as potential price breakouts or reversal. When the metric’s bands are tight, it indicates that the token has experienced low volatility for a prolonged period and might be set for a wild move in any direction.
Additionally, Crypto Tony (an X user with almost 450,000 followers) paid attention to a chart showing that XRP has been hovering between $0.41 and $0.65 in the last several months. They believe a “breakout” to the upside “is coming,” saying they “will play it when it comes.”
What Is The RSI Suggesting?
The Relative Strength Index (RSI) is a momentum oscillator used in technical analysis to measure the speed and change of price movements. It helps traders identify potential buying or selling opportunities based on the strength of a cryptocurrency’s recent performance.
The index varies from 0 to 100, with readings above 70 signaling overbought conditions and indicating a possible pullback. On the other hand, anything below 30 is considered bullish for the asset’s price.
While XRP’s RSI touched 70 a week ago, it has been experiencing a downfall recently. It fell to almost 30 on August 28 and is currently set at 37.
This article first appeared at CryptoPotato
