- An analyst observed tight Bollinger Bands on XRP charts reminiscent of 2017.
- XRP soared about 76,700% to an ATH of $3.84 after the 2017 observation.
- Accordingly, the analyst expects XRP to drop to $0 or soar to a new ATH above $4.
Crypto analyst by the pseudonym Charting Guy has called attention to a newly formed pattern on the XRP chart that suggests a bullish history may be about to repeat itself. In a recent post on X, the analyst disclosed that XRP’s monthly Bollinger Bands (BBs) have hit a historic milestone, with a bandwidth of 0.70. According to the analyst, this marks the tightest width observed since its peak at 0.73 back in 2017.
Notably, Bollinger Bands are a technical analysis tool used to measure volatility. They consist of a moving average line and two standard deviation lines, forming a band around the price. The analyst noted that the narrow bandwidth for XRP observed in 2017 occurred a month before the asset went on a historic price rally.
This was precisely February 2017, when XRP’s price was at around $0.005. The bullish trend for XRP began in late March 2017, and by April 1 of that year, the asset had surged by over 300% to $0.02174.
During the subsequent months, XRP bulls sustained this upward trajectory, propelling XRP to breach the $1 price point for the first time in December 2017. By January 2018, XRP set a new all-time high, reaching $3.84. This price point implies that XRP soared about 76,700% from $0.005 in February 2020 to $3.84 a year later.
In a subsequent update on the newly observed pattern, Charting Guy argued that XRP is poised for either a drop to $0 or a surge to a new all-time high above $4. He emphasized that the 20-day Simple Moving Average (SMA) is sloping upwards, greatly favoring an upside breakthrough. With XRP trading at $0.4923, the analyst projection above $4 implies a potential rally of 712%.
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