XRP came under significant selling pressure, threatening a decline below $2, but analyst Steph has cited a possible recovery that could see the price nearly quintuple.
In a tweet on Historically, this technical buildup preceded significant price movements. The most recent example is the explosive 490 percent rally observed a few weeks ago.
The technical structure
The popular Bollinger Bands indicator measures market volatility and provides key support and resistance levels. A “squeeze” occurs when bands shrink, indicating reduced volatility and often heralding a larger price move.
For XRP, the latest tightening of this indicator triggered a parabolic surge on the 12-hour time frame, sending the token’s price from around $0.49 in the first week of November to $2.90 in the first week of December .
Will history repeat itself?
Now, analyst Steph has spotted another tightness in the Bollinger Bands on the 12-hour chart and speculates that another breakout could be imminent.
Currently, the price of XRP is hovering around $2.26 and is consolidating after the recent upward rally. Yesterday, XRP hit new lows around $2.17 and was on the verge of breaking below the psychological $2 mark.
Nevertheless, the observed tightening of the bands amid this price movement suggests that market participants are anticipating the next big move.
If the breakout follows a similar 490 percent rally to a few weeks ago, market participants could expect XRP price to rise to as high as $13.33.
But while the prospect of history repeating itself remains…
