Quant Trader Explains Why XRP Saw a Massive Volatility Spike

Sunday 29 November 2020, 6:31 AM AEST - 1 month ago

Quant Trader Explains Why XRP Saw a Massive Volatility Spike

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

From November 21 to 24, within three days, the price of XRP increased by over 136%. It rose from $0.32929 to as high as $0.78 on Binance, during a strong uptrend. A quantitative trader attributed the massive volatility to relatively low liquidity and a large surge in open interest.

In 2017, the price of XRP peaked at over $3.2. At the time, Google Trends popularity of the keyword XRP hit 100 points out of 100. During the recent rally, it rose to 63 points. The highest level it saw was in September 2018, when the Google Trends popularity reached 20.

In comparison, in early November, the popularity of the keyword was hovering at around 5 to 7 points. This shows that the interest in the cryptocurrency spiked significantly as the rally began.

The popularity of XRP on Google Trends. Source: Google TrendsThe popularity of XRP on Google Trends. Source: Google TrendsWhy Did XRP Surge so High and Why Did Interest Spike? The primary catalyst behind XRPs steep rally was like the frenzy around the cryptocurrency on social media.

On-chain analysis firms, including Santiment, reported that XRP remained a polarizing keyword even with popular keywords like Black Friday.

The popularity of XRP on social media. Source: Santiment

Albeit the popularity of XRP on social media declined after it crashed on Coinbase from $0.8, Analysts at Santiment said:

This Thanksgiving follows the largest dip day in two and a half months, and #crypto social media is trending with subjects like #buythedip and #blackfridaysale. $XRP is sti ...

Read full story on U.Today

Disclaimer: The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.