The crypto market has been experiencing significant volatility, with XRP taking a massive hit earlier this month. Due to market-wide bearish pressure, the token dropped nearly 25% in a single day.
However, XRP has since regained most of its losses, showing resistance despite uncertain conditions. Now, the XRP/BTC ratio is flashing a potential breakout signal, which could set the stage for a 200% rally.
XRP Poised for a Bollinger Band Breakout?
While many altcoins have struggled against Bitcoin’s dominance, XRP appears to be showing signs of strength. According to some market analysts, XRP/BTC is now testing the upper Bollinger Band on the monthly chart for the first time since 2017.
Bollinger Bands measure market volatility, and a breakout above the upper band is often seen as a sign of strong bullish momentum.
If XRP successfully breaks through, it could mean a change in market sentiment, leading to a potential surge similar to what was seen in April 2017. At that time, XRP/BTC skyrocketed by 200% after a similar breakout pattern.
XRP Price Analysis
Despite the recent market turbulence, XRP has shown remarkable recovery. After dropping to $1.78, its lowest level since November, the cryptocurrency bounced back, closing the day with a 15% gain.
This recovery has formed a “hammer” pattern on the XRP chart, a technical indicator that suggests strong buying interest at lower price levels.
Analysts believe that if XRP can maintain its current momentum, it could soon retest the $3.10 resistance level. A further push might even bring it close to its all−time high of $3.40.
However, this bullish outlook would be invalidated if XRP drops below the critical $2 support level.
