This is a daily technical analysis by Omkar Godbole, a Coindesk analyst and franchised market technician.
XRP measurement
Price volatility has fallen to its lowest level since President Donald Trump won the U.S. election in November. Nevertheless, it has not reached the level of a strong historical directional trend.
XRP’s 30-day annualization achieved volatility, a measure of volatile prices over the past four weeks, and has recently dropped to 44%, the lowest since early November. The decline marked a sharp landslide at higher than 150% above the heights registered in December and March.
The volatility crash comes after boring price action in the XRP market. Despite its debut on XRP Futures on CME, several issuers applied for SPOT XRP ETFs and overall active regulatory developments in the crypto industry during Trump’s presidency.
Since March, XRP has traded primarily between $2 and $2.60, unless the occasional short life span is less than $2. XRP is a payment-focused cryptocurrency used by Fintech Company Ripple to facilitate cross-border transactions.
Price action is consistent with Bitcoin, a cryptocurrency divided by market value, which has been trading between $100,000 and $110,000 for nearly 50 consecutive days, mostly between $100,000 and $110,000.
What’s next?
Volatility is mean, meaning over time it tends to fluctuate around its long-term average. In other words, a sharp rise in volatility usually paves the way for consolidation, while the length of volatility often lays the foundation for a strong directional trend.
That said, 30-day volatility achieved since 2014 is still above the 15% to 30% range, which is significant volatility and updated price turbulence.
