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Famous cryptocurrency XRP The new year is about to start with a bang, namely a 25% price hike. Although it is not as constant as everything else in the cryptocurrency market, this is at least what the Bollinger Bands indicator suggests.
The indicator, developed by famous trader John Bollinger, consists of an average and two lines that represent deviations above and beyond this average – usually a 20-day moving average. With these two ranges and the median, a price range is formed within which investors can estimate whether the token is currently oversold or overbought. It is also a good indicator of important support and resistance levels for the price.
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For example, look at the journal XRP price chartOne can see how the popular cryptocurrency recently reached the lower range at $2. After this happened, the bulls recharged and we saw a buying reaction that pushed the price XRP price By 2% today.
Considering the fact that XRP reached the edge of the oversold zone in a high time frame and buyers showed their appetite to buy the token there, we can say that the asset has reached its local bottom.
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Now, looking at what's next, the most logical idea is to test the upper range which currently extends to $2.55. If XRP actually makes such a move, it could result in a roughly 25% upside from the current price.
There is still a hurdle in the middle, currently at $2,275, where those who bought the recent dip may take some profits. However, if the average is also broken, it will reinforce the bullish bias for XRP.
Disclaimer: The opinions expressed by our writers are their own and do not represent the opinions of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not responsible for any financial losses incurred while trading cryptocurrencies. Do your own research by contacting financial experts before making any investment decisions. We believe all content to be accurate as of the date of publication, but some offers mentioned may no longer be available.
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