XRP on the verge of a potential breakout against BTC, with technical analysis suggesting a bullish imbalance in the market. The XRP/BTC ratio is poised to move above its upper Bollinger band for the first time since 2017, hinting at a significant XRP bull run ahead.
The XRP/BTC ratio is looking to move out of the volatility bands, signaling a bullish imbalance in the market.
The XRP/BTC ratio refers to the exchange rate between Ripple's cryptocurrency, XRP, and Bitcoin.
This ratio fluctuates constantly due to market supply and demand.
The ratio can be influenced by various factors such as global economic trends, regulatory changes, and adoption rates of both cryptocurrencies.
As of recent data, the average XRP/BTC ratio has been around 2,500-3,000 XRP per BTC.
However, it's essential to note that exchange rates can change rapidly, making real-time monitoring crucial for investors.
Bullish Imbalance Ahead?
The pattern is reminiscent of April 2017 that set the stage for a 200% surge. The outlook for alternative cryptocurrencies appears grim relative to bitcoin as a renewed trade war potentially breaking out between the U.S. and its major trading partners may threaten to destabilize the global economy.
XRP/BTC Ratio Hints at Major Rally
For instance, the ‘move above the upper Bollinger band on the monthly chart for the first time since 2017’ is hinting at a significant XRP bull run ahead. The break above the upper band represents a bullish imbalance in the market, and prices typically maintain the lead for several days in a pattern called high momentum.
Ripple's XRP is a decentralized digital currency and cryptocurrency that enables fast, cheap, and secure international payments.
Founded in 2012 by Chris Larsen and Jed McCaleb, Ripple has grown to become one of the largest players in the global payment market.
XRP has a unique consensus mechanism called the Ripple Protocol, which allows for real-time settlement of cross-border transactions.
According to Ripple's own data, over $3 billion worth of XRP is traded daily, making it the third-largest cryptocurrency by market capitalization.
Understanding Bollinger Bands
Bollinger bands are volatility bands placed plus two and minus two standard deviations above the 20-period (day/week/month) simple moving average of an asset’s price. Traders who track price patterns typically jump in with longs once prices move past the upper band, which is a sign of a bullish imbalance in the market.
History Repeats Itself?
The ‘XRP/BTC ratio surged nearly 200% following the Bollinger band breakout of April 2017‘ , which marked a bullish resolution to prolonged low volatility trading. Let’s see if the history repeats itself.
- coindesk.com | XRP Teases Bollinger Band Breakout Against Bitcoin: Godbole
- coinstats.app | XRP Teases Bollinger Band Breakout Against Bitcoin: Godbole
