The Last Time This Happened, Ripple’s XRP Spiked  650x, Indicator Suggests We Could See a Repeat 

Technical analysts are calling attention to a rare signal on the charts that previously preceded an explosive 65,000% rally in Ripple’s XRP cryptocurrency. However, amid mixed fundamental factors, some experts urge patience before going all-in on the potential upside.

According to crypto trader Tony “The Bull” Severino, XRP’s monthly Bollinger Bands – a popular technical indicator measuring volatility – are currently tighter than they’ve ever been in the token’s history. “The last time they were this tight, there was a 65,000% rally that followed,” Severino stated in a recent tweet.

Fellow analyst Dom highlighted the same phenomenon, tweeting “If a breakout is going to happen, it should happen pretty soon. Price just printed the same false break of structure it has in the past.”

For the uninitiated, Bollinger Bands plot two standard deviation lines above and below an asset’s moving average. When the bands squeeze tightly together as volatility declines, it often proceeds a volatile price expansion to the upside or downside. In XRP’s case in 2017, that volatility breakout led to a staggering 650x price surge to new all-time highs.

There Are Reasons to Be Cautious

However, despite the bullish technical signal, there are reasons to be cautious about extrapolating past performance this time around. XRP has repeatedly broken from its typical price structures and trading patterns in recent years amid the token’s struggles.

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Additionally, investor enthusiasm in XRP itself appears to be waning, with many crypto traders outright dumping their holdings or shifting allegiances to other digital assets. If a bullish breakout does occur, it may lack the overwhelming buy-side pressure needed to fuel an explosive 650% rally.

On the flip side, the clean technical signal could easily be a precursor to an unexpected downside move if market dynamics shift. For these reasons, analysts suggest waiting for clearer fundamental and price confirmation before speculating on XRP’s next major move.

Only time will tell if the stars will align for Ripple’s XRP to reenact its historic 2017 pump or if the cryptocurrency’s glory days are behind it. But this extremely rare technical phenomenon is certainly worth watching.

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Felix Küster
Felix Küster

Felix Kuester works as an analyst and content manager for Captainaltcoin and specializes in chart analysis and blockchain technology. He is also actively involved in the crypto community - both online as a central contact in the Facebook and Telegram channel of Captainaltcoin and offline as an interviewer he always maintains an ongoing interaction with startups, developers and visionaries. The physicist has couple of years of professional experience as project manager and technological consultant. Felix has for many years been enthusiastic not only about the technological dimension of crypto currencies, but also about the socio-economic vision behind them.

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