XRP Unusual Calm: Is a Price Storm Approaching?

An important measure of the price volatility of XRP – the cryptocurrency used by Ripple – has just fallen to its lowest level since Donald Trump's victory in the U.S. presidential election last November. However, the current volatility level is still not low enough to signal a strong price action ahead, according to historical data. The 30-day volatility of XRP has fallen sharply. According to data from the TradingView platform, the 30-day annualized realized volatility of XRP has just fallen to 44%, the lowest level since early November. This is a significant drop from the peak above 150% recorded in December last year and March this year. Low volatility reflects the price action of XRP being in a prolonged "sideways" phase. Notably, this occurs despite a series of recent positive events for XRP, including the major commodity exchange CME launching XRP futures contracts, many financial institutions applying for approval of spot ETF funds for XRP, along with a more favorable legal policy environment under the Trump administration. XRP price action is moving sideways within a narrow range Since March, the price of XRP has primarily fluctuated in the range of 2.00 to 2.60 USD, occasionally experiencing short falls below 2 USD but quickly recovering. This price action is similar to the sideways trend of Bitcoin – the largest cryptocurrency by market capitalization – which has also been stabilizing around the level of 100,000 to 110,000 USD for nearly 50 consecutive days. The meaning of the price action decline In the financial market, volatility is an "mean-reverting" indicator (, meaning it often tends to revert to the long-term average after a sharp increase or decrease. Specifically, a period of increased volatility usually leads to a price correction or sideways movement, while a prolonged low volatility phase often paves the way for a strong trend to come. However, currently, the actual 30-day volatility of XRP is still higher than the 15% - 30% level, which is considered the bottom range of volatility in history since 2014 and often signals the next strong price action. What is waiting for XRP? If the current trend continues, the XRP market may be entering a "silent accumulation" phase before a large volatility wave in the near future. A continued fall in volatility to the 30% threshold or lower could serve as a warning signal that strong price action is approaching – whether it be upward or downward. In the context of the market's fundamental factors remaining positive and the legal landscape gradually becoming more open, particularly under the influence of the Trump administration, investors will need to closely monitor the volatility indicators and support/resistance price levels to prepare for unexpected movements in the XRP market in the near future.