From the beginning of November XRP price at its peak, it grew by more than 220%, and the token itself became extremely popular, and people started talking about it again. After peaking at $1,634, XRP reached a high not seen since May 2021 and then, as expected, began to correct and is now trading at $1,367, 16.54% below its local high, according to exchange data from Bitstamp.
Despite all the skepticism and criticism that XRP is an old-timer in the cryptocurrency market, which regularly comes under attack from regulators, at the same time, it has a large community of enthusiasts and investors. Everyone is interested in where a token will go next, and while predicting the future of the cryptocurrency market is hardly a useful exercise, we can look to some indicators that can indicate the future direction of a token’s price.
One such indicator is Bollinger Bands, developed by trader John Bollinger, which show the position of price in relation to its average values using three moving averages as an example.
This colossal step in XRP price was preceded by maximum compression of these bands. Then U.Today wrote that major changes in the price of XRP were coming, and they happened. Now the bands have opened, and the price of the token, during all the excitement of the last days, is below the upper curve, from which it has fallen for three days in a row.
What’s next for XRP?
According to the rules of Bollinger Bands, if the price of XRP fails to close its weekly candle above the upper band, that is, to rise and hold above $1.655 by next Monday, then a retest of the middle of the range now passing through the $1 zone becomes very likely. In this case, one likely scenario could be that XRP would fall by at least another 27% from current levels.
Considering that the token is up 220% and the cumulative correction could be as much as 39% from the top, such a move would be considered quite healthy and would in no way challenge the bullish bias that has formed around XRP.
Time will tell, but the most painful options cannot be ruled out.
