XRP Set To Skyrocket 60,000% On Tightest Bollinger Bands Ever

In an analysis shared on X and YouTube, crypto analyst Matt “The Great Mattsby” Hughes highlighted what could be a historic move in XRP price based on the Bollinger Bands indicator. Hughes pointed to an impending compression of XRP’s monthly Bollinger Bands, signaling the possibility of a surge similar to previous rallies that saw the cryptocurrency see significant gains.

fuse explanation From X: “XRP is experiencing the tightest monthly Bollinger Band squeeze in its history and among all cryptocurrencies right now. The last time it squeezed like this, it surged 60,000%.” ​​In a YouTube video, the crypto analyst went into more detail, explaining previous XRP price movements when the Bollinger Bands were this tight.

XRP Could Soar to $250

According to Hughes, the first instance occurred between September 2016 and March 2017. During this period, the price of XRP stabilized for several months, causing the Bollinger Bands to tighten dramatically. After this period of stability, the price of XRP skyrocketed, achieving gains of approximately 60,000%, according to Hughes’ estimates.

XRP Price Analysis | Source: X @matthughes13

The second time was from December 2020 to April 2021, when XRP rose by about 1,000%. “Because it was much lower during this period and didn’t seem as tight as it was here. [the first time]”You can tell it was a lot tighter in the beginning,” Hughes explained.

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This is the third time, and “it’s the tightest it’s ever been, even tighter than the first time, and it should explode at a much higher level than previous cycles,” he said.

Bollinger Bands are a technical analysis tool defined by a set of trendlines located two standard deviations (positive and negative) away from a security’s simple moving average (SMA), but can be adjusted to suit your preferences. When these bands narrow, volatility typically decreases, and when the bands begin to widen again, prices are likely to move higher or lower.

Hughes also looked at the time span from the all-time high to the current price, noting that 2,373 days have passed. This long period of relatively stagnant price growth, combined with the extremely tight Bollinger Bands, has Hughes predicting a major upswing is coming soon.

“It’s the tightest it’s ever been so it proves to me that we’re going to see some movement in the near future. I don’t know when, but at some point you’ll see this looking more and more like a breakout,” Hughes said.

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In addition to the technical perspective, he also discussed XRP’s price performance relative to its 20-month moving average, noting that similar to previous patterns, XRP had a fairly long period below this moving average before a significant rally.

In the two previous instances, XRP’s breakout was preceded by a period below this moving average, which then tested the bottom of the Bollinger Band before the breakout began. Notably, the price of XRP has yet to test the bottom of the Bollinger Band, which is why Hughes speculates that the price could see a pullback as a “final flush out” that could see it drop to the $0.30 region before a potential breakout.

Such a move would be consistent with past cycles where a test of the lower Bollinger Band led to a strong upside. “So it’s possible that the price could move lower to test it. Maybe one final shot would see it drop to the $0.30 range, but we don’t know. If so, it would be a further confluence of past cycles and the price could still break out,” he concluded.

Incidentally, if history repeats itself and XRP rises by 62,000%, the price would hit $250.

At the time of writing, XRP is trading at $0.44574.

XRP Price
XRP Price Remains Below 200-Week EMA, 1-Week Chart | Source: XRPUSD on TradingView.com

Featured image created by DALL·E and charts taken from TradingView.com


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