XRP on Verge of 25% Rise on New Year’s Eve, Bollinger Bands Signal

The popular cryptocurrency XRP is about to start the new year with a bang, specifically a 25% price spike. While not set in stone like everything else on the crypto market, this is at least what the Bollinger Bands suggest.

Developed by renowned trader John Bollinger, the indicator consists of the median and two lines that represent a deviation above and beyond that median — usually a 20-day moving average. With these two bands and a median, a price range is formed in which investors can estimate if the token is currently oversold or overbought. It is also a good indicator of important support and resistance levels for the price.

For example, looking at the daily price chart of XRP, one can see how the popular cryptocurrency recently reached the lower band at $2. After this happened, the bulls recharged and we saw a buying reaction that pushed the price of XRP up by 2% today.

Considering the fact that XRP reached the edge of oversold territory on 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.

Now, looking at what’s next, the most logical thought is a test of the upper band that currently stretches to $2.55. If XRP does indeed make such a move, it could result in a rise of almost 25% from the current price.

There is still an obstacle in the form of the median, currently at $2.275, where those who bought the recent dip may take some profits. However, if the median is also breached, it will further solidify the bullish bias for XRP.

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