XRP has continued to show mixed price action, but has remained steady around $1.0, drawing attention among market analysts about what its next price move could be.
Amid the unstable market conditions, latest onchain data shows that the asset could be preparing for a parabolic price move as its realized volatility on leading crypto exchange Binance falls.
XRP enters quiet phase
The data, which shows that XRP's realized volatility on Binance has fallen to its three-month low, indicates that XRP is currently trading through one of its quietest periods in recent months.
Notably, its 30-day realized volatility has dropped to around 0.34 as of Wednesday, August 5, signaling a quieter market while XRP prints a new price target.
The rapid decrease in the XRP volatility metric has come when XRP is trading near $1.07, following a price decrease of about 1.68% over the last day.
Apparently, this reflects a noticeable slowdown in XRP's day-to-day price swings after the heightened volatility seen in June, positioning it for a bigger price move.
Nonetheless, it is important to note that a decrease in volatility does not indicate whether prices will move higher or lower; it has often been followed by periods of consolidation that eventually lead to stronger price action in previous cycles.
What does history say?
Although the volatility metric suggests that XRP could be preparing for a major price breakout as it remains temporarily quiet, historical data shows that XRP has just entered one of its worst months.
Over the past years, XRP has consistently logged negative price returns in its August performances, dashing hopes of a major price recovery this month in case history repeats itself.
U.Today Editorial Team
Dan Burgin
