Elite Analyst Predicts Ripple's (XRP) Next Big Move—Is Another 490% Surge Coming?

Popular analyst Steph Is Crypto shared on X (formerly Twitter) that XRP's Price Bollinger Bands are tightening once again, a pattern that preceded a dramatic

Acclaimed crypto analyst Steph Is Crypto has highlighted on X (NYSE:TWTR) that XRP’s price Bollinger Bands are once again tightening, a pattern that preceded a dramatic 490% price surge last month. As XRP's price stalls following the recent rally, the tightening Bollinger Bands are being closely watched by market participants to gauge the asset's next move.

While Steph Is Crypto is bullish on XRP and anticipates another significant price move, the direction of the breakout remains uncertain. The Bollinger Bands can indicate both bullish and bearish trends, depending on the broader market context and asset's price action.

As evident on the 12-hour timeframe, XRP's price has remained largely stagnant after clocking in the impressive 490% gain. After peaking at around $2.30, the asset consolidated within a narrow range, with price corrections also being limited in magnitude.

Now that XRP has stalled out around $2.30, traders are speculating whether another explosive move is on the horizon, especially considering the Bollinger Bands, which are showing signs of compression. Historically, this tightening of the Bands has preceded major price action, a pattern that traders are observing.

Bollinger Bands are a technical analysis tool devised by John Bollinger that gauge an asset's volatility. They consist of three lines: a simple moving average (SMA) in the middle, and upper and lower bands that are plotted two standard deviations away from the SMA.

As an asset's price fluctuates within Bollinger Bands, several key observations can be made. When the bands are narrow, it indicates low volatility and typically precedes a breakout. Conversely, wide bands suggest high volatility, which may culminate in a period of consolidation.

Moreover, Bollinger Bands can also be used to identify overbought and oversell conditions. When the price surges above the upper Bollinger Band, it may signal an overbought scenario, increasing the likelihood of a price correction.

Conversely, if the price drops below the lower Bollinger Band, it could indicate an oversold condition, often followed by a rebound in asset price.

Notably, Bollinger Bands are a lagging indicator, meaning they react to past price movements rather than anticipating future trends. Hence, it's crucial to combine Bollinger Bands with other technical analysis tools and indicators to gain a more comprehensive perspective of an asset's price movements.