Cryptocurrency analyst Matt “The Great Mattsby” Hughes has predicted a potentially historic price move for XRP, based on a significant narrowing of the Bollinger Bands indicator. Hughes pointed out in a recent study shared on X and YouTube that XRP’s monthly Bollinger Bands are the tightest they have ever been.
He thinks this could mean a major spike like previous ones.”XRP has one of the tightest monthly Bollinger Band squeezes in its history and in all of crypto right now,” Hughes said on X. It went up 60,000% the last time it squeezed like that. In a YouTube video, he went into more depth about how XRP’s price had changed in the past when Bollinger Bands were this tight.
The first important time was from September 2016 to March 2017, when XRP stayed stable for a few months, making the Bollinger Bands much tighter. After this time, the price of XRP went through the roof, rising by about 60,000%.
XRP surges 1,000 percent
In the second case, from December 2020 to April 2021, XRP went up by about 1,000%. This was a smaller increase than the first one, which Hughes said was because the bands were closing less dramatically.
Hughes said, “This instance is the tightest it has ever been—even tighter than the first time. This suggests that it should explode much higher than previous cycles.”
A fundamental analysis tool called Bollinger Bands is made up of trendlines that are set two standard deviations away from a security’s price’s simple moving average. When these bands get narrow, it usually means that volatility is low. When they start to get wider, however, it means that prices could move in significant quantities.
Hughes also brought up the fact that 2,373 days have passed since XRP’s all-time high. This long time of price stability, along with the extremely tight Bollinger Bands, supports his prediction that prices will soon move significantly.
That, along with the fact that it’s the tightest it’s ever been, makes me think that there will be a move soon. Hughes said, “I don’t know when, but sometime.”
Hughes also looked at Ripple performance in relation to its 20-month moving average. He noticed that the cryptocurrency has been below this average for a long time before significant rises in the past. He pointed out that the last two times Ripple broke out, it came after hitting the bottom of the Bollinger Band and then a period below this moving average.
Hughes thinks that XRP’s price might drop to around $0.30 before it breaks out because it hasn’t yet tested the bottom of the Bollinger Band. To try it, there is a chance that the price could go down. There could be one more flush out, and the price could drop to $0.30. “We don’t know, but if that’s true, then that’s just more of the same things happening over and over again,” he said.
If the past happened again and the price of XRP went up by 60,000%, it would hit $250.
