XRP price is on the verge of a major breakout. The Bollinger Bandwidth indicator, a key indicator of market volatility, shows that a change is due. The indicator, which measures the percentage of the 20-day moving average, is gaining traction among analysts scrutinizing short-term price movements, particularly within the cryptocurrency market.
Bollinger Bandwidth is a favorite among crypto-day traders in the always-on crypto markets. It acts as a dashboard to spot the accumulation of market pressure. A tightening Bollinger Bandwidth indicates a time of relative quiet in the market. It can be an indicator for an imminent breakout, just like a tightly wound spring that’s ready to pop free.
This indicator measure the distance between upper/lower Bollinger Band. It can foreshadow sell-offs, which makes it an important tool for traders who want to stay one step ahead of the direction of markets.
Bollinger Bandwidth is a popular tool among analysts, especially on the 4-hour chart, a popular crypto trading timeframe. This allows them to spot accumulation or distribution ranges and forecast breakout moves or sharp reversals. The second indicator gauges the width between the Bollinger Bands relative to the 20-day moving average as a percent. This simple calculation allows equity traders to identify different changes in market momentum.
