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After a significant rise of almost 500% in recent weeks, the price of XRP, currently the third largest cryptocurrency, appears to have reached its local ceiling. Although it is in line with the performance of the broader cryptocurrency market, there is potential for it XRP It may not stop the correction there and eventually find a stop point for the recent downward movement well below the current level of $2.26.
In particular, a hint of such a development was given by Bollinger Bands. The popular indicator developed by John Bollinger consists of a simple moving average with two deviations above and below the sacred line, which together form a range. currently, XRP price It lies right on the upper range, while its average is at $1.
The distance is huge. The last time something similar happened was in 2021, and the price eventually reached the average in the following weeks. However, the latest case is very similar to what XRP fans saw in 2018.
At the time, the price of the popular cryptocurrency was $3.3, which was actually an all-time high for XRP, and the average was at $0.72.
To make a long story short, XRP price It fell more than 82% in the next four weeks to a low of $0.5627 and entered a three-year long accumulation. Even in 2021, after reaching the average, the cryptocurrency price actually fell below it, and the distance between the bands narrowed again.
Although this situation is not fixed, it may be repeated based on the historical trends of XRP, which is why it is important not to let the illusion about the token blur the vision and perhaps take at least part of the profit from the recent crazy rally.
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