XRP and Bitcoin (BTC) are displaying price patterns similar to a compressed spring, indicating they may soon experience a significant price movement. This conclusion comes from an analysis of Bollinger Bandwidth, a volatility indicator, which has reached its lowest points since October 2024. Such low levels suggest that both cryptocurrencies are accumulating energy, ready to be released in a sharp price movement—either upward or downward. Historically, while tighter Bollinger Bands can often lead to bullish rallies, they can also signal potential sell-offs, as seen during the aftermath of FTX's collapse in October 2022. Currently, the market is observing XRP and BTC in a quiet phase with similar Bollinger Bandwidth patterns, hinting at either a bullish or bearish volatility explosion. The developments from the Federal Reserve might also play a crucial role in influencing the market direction of these assets in the near future.

Source 🔗