The XRP/BTC ratio is on the verge of breaking out of the upper Bollinger band on the monthly chart, a bullish signal not seen since 2017. This indicates a potential significant bull run for XRP in the near future, despite the grim outlook for alternative cryptocurrencies amidst the looming trade war between the U.S. and its major trading partners.
Key Market Implications
- The break above the upper Bollinger band suggests a bullish imbalance in the market, with prices likely to maintain the lead for several days in a high momentum pattern.
- Traders who track price patterns are expected to enter long positions once prices move past the upper band, further fueling the bullish sentiment.
- The reliability of the breakout is enhanced by the prolonged consolidation between the Bollinger bands prior to the breakout.
Technical Analysis
Bollinger bands are volatility bands placed plus two and minus two standard deviations above the 20-period simple moving average of an asset’s price. The XRP/BTC ratio’s move above the upper band is a significant bullish signal, especially considering the last time this occurred in April 2017, the ratio surged nearly 200%.
Tags: XRP, Ripple, Bollinger Bands, Technical Analysis, Cryptocurrency Market
Source: https://www.coindesk.com/markets/2025/02/04/xrp-teases-a-bollinger-band-breakout-against-bitcoin
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