Godbole: XRP Flashes Bullish Pattern Resembling 2017’s Surge vs. Bitcoin

XRP/BTC Ratio Signals Potential Bull Run, Echoing 2017 Breakout

The XRP/BTC trading pair is showing signs of breaking out of its volatility bands, signaling a bullish imbalance in the market.

While the broader outlook for altcoins remains dim amid concerns of a potential trade war between the U.S. and its major global partners, which could destabilize the global economy, a few digital assets are showing promising signs of strength.

One such asset is XRP, which is poised to breach the upper Bollinger band on its monthly chart for the first time since 2017, hinting at a possible significant bull run. Bollinger bands, consisting of two standard deviations above and below the 20-period moving average, are a key tool for measuring price volatility. When the price breaks above the upper band, it suggests market imbalances in favor of the bulls.

A breakout above the upper band typically leads to high momentum, with prices sustaining their upward trend for several days. Traders often take this as a cue to enter long positions, as breakouts following long periods of price consolidation tend to be reliable.

In April 2017, the XRP/BTC ratio surged nearly 200% after breaking above the upper Bollinger band, marking the start of a substantial bull run after a prolonged period of low volatility.

With history as a guide, market participants are now eagerly watching to see if the same pattern will play out once again.