Ripple’s XRP Price Squeeze Sparks Hope for 2017-Esque Revival

XRP’s price has been low recently, but a technical indicator suggests a possible future price jump.

Guy measuring XRP coin as its floating up in the network space.
Created by Kornelija Poderskytė from DailyCoin
  • XRP holders have been feeling down due to recent price action.
  • Analysts have noticed the tightening Bollinger Bands for XRP.
  • A similar pattern has preceded a major XRP surge in the past.

For XRP holders, the past few months have been a rollercoaster ride. The cryptocurrency’s price has remained stubbornly low, leaving many wondering what the future holds. However, a recent pattern on the price chart has ignited a spark of excitement, fueled by a technical indicator known as Bollinger Bands. Could this be a sign of a significant price jump on the horizon?

XRP’s Bollinger Bands Mirror 2017 Pattern

Bollinger Bands, developed by John Bollinger, are a popular technical analysis tool that utilizes a moving average and volatility bands. The bands themselves are two standard deviations above and below the moving average, essentially creating a “channel” where the price tends to fluctuate. 

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When these bands constrict, it typically indicates a period of low volatility. However, historically, such constriction has often preceded significant price movements in either direction. The current narrowing of the Bollinger Bands for XRP is particularly noteworthy because it mirrors a similar pattern observed in 2017.

Back then, the constriction preceded an unprecedented surge in XRP’s price, a staggering 55,000% increase that saw the cryptocurrency peak at $3.30 per token by early 2018. While such dramatic gains are unlikely to be replicated, history offers another example of a Bollinger Band constriction leading to a substantial price increase for XRP. 

Will XRP Repeat History?

In late 2020, a similar pattern preceded a significant sevenfold increase in price, with XRP reaching almost $2 per token by April 2021. The ongoing constriction that began in November 2022 has many analysts raising their eyebrows, suggesting a potential price rise for XRP on the horizon. 

However, the cryptocurrency market is notoriously unpredictable. XRP is currently trading at less than half a dollar, making a return to its 2018 highs a seemingly fantastical notion. So, will XRP experience another explosive price surge? The answer, as with all things crypto, remains uncertain. 

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The Bollinger Band constriction does however add a layer of intrigue to XRP’s current price action, offering a glimmer of hope for bulls and a reminder of the market’s inherent volatility for all investors.

On the Flipside

  • The significant price jumps in 2017 and 2020 may not be replicated in the current market conditions.
  • The broader cryptocurrency market trends, regulations, and news events can significantly impact XRP’s price, independent of Bollinger Bands.

Why This Matters

This historical mirroring of Bollinger Band constriction could signal a significant XRP price increase, similar to the surges in 2017 and 2020, even if the exact scale is unpredictable. This pattern is significant for XRP holders and the broader market, as a potential price jump could inject momentum and renewed interest into XRP.

To learn more about the factors affecting XRP’s price and its future outlook, read here:
XRP Investor Optimism Meets Low Activity, Will Price Recover?

To learn more about the potential listing of Solana ETFs and its impact on the cryptocurrency, read here:
Solana ETF Plans Are a Go: Cboe SEC Filing Makes It Official

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.