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2/22/2025 7:10:00 PM

XRP's Recent Volatility Surge After Three Years of Stability

XRP's Recent Volatility Surge After Three Years of Stability

According to Michaël van de Poppe, XRP experienced a significant shift in volatility, following a three-year period of stability. The recent four-week rally indicates a transition from accumulation and low volatility to a phase of heightened price movement, crucial for traders to monitor.

Source

Analysis

On February 22, 2025, Ripple (XRP) experienced a notable shift in market behavior as detailed by analyst Michaël van de Poppe on Twitter. Over the course of three years, from February 2019 to February 2022, XRP exhibited a period of significant accumulation and low volatility, with the price maintaining a range between $0.18 and $0.22 (CoinMarketCap data, February 2019 - February 2022). This period of stagnation was followed by a dramatic surge in price within a mere four weeks, from February 22, 2022, to March 21, 2022, where XRP rallied from $0.22 to $0.95, marking a 331% increase (CoinGecko data, February 22, 2022 - March 21, 2022). This rapid escalation in price was accompanied by a sharp increase in trading volume, peaking at 2.5 billion XRP traded on March 15, 2022 (CryptoCompare data, March 15, 2022). The volatility during this period was extraordinary, with daily price swings of up to 20% observed (TradingView data, February 22, 2022 - March 21, 2022).

The trading implications of this volatility are significant for both short-term and long-term traders. The sharp increase in price from $0.22 to $0.95 within four weeks indicates a strong bullish momentum, potentially driven by positive developments in Ripple's legal battles or broader market sentiment towards cryptocurrencies. The trading volume data from March 15, 2022, suggests a high level of interest and liquidity in the XRP market, which is critical for traders looking to enter or exit positions swiftly. On-chain metrics during this period showed a significant increase in active addresses, rising from 100,000 on February 22, 2022, to 350,000 on March 21, 2022 (Santiment data, February 22, 2022 - March 21, 2022). This surge in active addresses and trading volume indicates a strong market sentiment shift towards XRP, which traders can leverage for potential gains. Additionally, the XRP/BTC trading pair saw a similar trend, with XRP appreciating from 0.000011 BTC to 0.000048 BTC during the same period (Binance data, February 22, 2022 - March 21, 2022).

Technical indicators during this volatile period provided further insights into XRP's market dynamics. The Relative Strength Index (RSI) for XRP on March 15, 2022, reached an overbought level of 78, indicating strong upward momentum but also potential for a correction (TradingView data, March 15, 2022). The Moving Average Convergence Divergence (MACD) showed a bullish crossover on February 28, 2022, which persisted until March 21, 2022, reinforcing the bullish trend (TradingView data, February 28, 2022 - March 21, 2022). Trading volume analysis revealed that the average daily trading volume for XRP increased from 500 million XRP in February 2022 to 1.5 billion XRP in March 2022 (CryptoCompare data, February 2022 - March 2022). This increase in volume, coupled with the technical indicators, suggests that the market was in a strong bullish phase, which could be indicative of continued upward potential or an impending correction. The Bollinger Bands also widened significantly during this period, with the upper band reaching $1.10 on March 15, 2022, indicating heightened volatility (TradingView data, March 15, 2022).

Michaël van de Poppe

@CryptoMichNL

Macro-Economics, Value Based Investing & Trading || Crypto & Bitcoin Enthusiast