A breakout period or a major price movement may be imminent for the Ripple token

• Monthly price Bollinger Bands show tightest all-time highs amid declining volatility.
• The last time the price of XRP showed this big reduction, it rose almost 850% to an ATH of $1.9669 in the 2020 half year.
• With volatility often cycling between lows and highs, it can only be a matter of time.

The price of Ripple (XRP) has been temporarily depressed, as token holders patiently hold on to the ecosystem’s tussle with the US Securities and Exchange Commission (SEC). According to a recent report, the price of the premium token is stuck below $0.50, failing to breach key resistance levels.

Also read: XRP struggles to recover as Ripple’s ongoing lawsuit could reach Supreme Court, former SEC litigator says

Ripple price monthly Bollinger bands show tightest ever

While the price of Ripple has had XRP holders in a state of confusion for the longest time, a major move could be in the works as the Bollinger Bands are showing the tightest pressure ever. The last time the bands were compressed like this was in 2020, the previous year of the Bitcoin halving. The XRP price is holding above the middle line (20-period SMA) of the Bollinger indicator.

1 month XRP/USDT chart

The Bollinger Bands indicator measures the volatility of an asset’s price, with a squeeze or squeeze being the main concept of this tool. A squeeze indicates a period of low volatility. The main principles of the indicator are:

• The movement of asset prices outside the bounds of the band is usually not sustainable.
• Price action above the upper band indicates overbought markets, suggesting a correction.
• Price action below the lower band indicates oversold markets, it also suggests a pullback.
• A contraction or contraction indicates lower price volatility, while an extension indicates higher price volatility.
• At least 95% of each price action takes place between the upper and lower bounds.

Considering volatility often swings between low and high volatility, it may be a matter of time before the XRP price breaks out. The Relative Strength Index (RSI) and the Awesome Oscillator (AO) have neither side of the border, while the Moving Average Convergence Divergence (MACD) emphasizes the same.

However, despite the insignificant momentum shown by the RSI, AO, and MACD indicators, it is important to note that the volatility does not support the planned move. It doesn’t work that way.

During the narrow Bollinger Bands period, traders can use range-based strategies, buying near the lower band and selling near the upper band as they expect the price to move within the set range.

For trend-following traders, narrow Bollinger Bands can indicate a possible downtrend in the current trend or a period of consolidation before the trend resumes. It is important for traders to take caution and wait for confirmation signals before entering a trade during a narrow Bollinger Band condition.

This report is not leaning on XRP making triple or even double digit gains like it did in May 2020, but it just suggests that a big move is coming.