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$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.
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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.