Inspired by some of the XRP analysis I've seen on Steemit, especially by bullishmoney, I am trying my hand on my own flavour of DIY analysis on XRP.
Now we know XRP had really woken up in terms of growth and volatility in the last couple of months.
I've taken the average day rate and average trading volume for that price point from the last 3 months and looked for a correlation:
The primary intention was to try see if there is a price point where trading volume would suddenly increase. This would be a price point where may be a lot of buyers and sellers coming in, affecting volatility and increasing the rate of growth or decline.
I did not really find this however but did discover that trading volume tends to increase as the price goes up.
I have also created 2 separate charts to separate out the data during bullish days and bearish days. They are not the best data as I haven't looked at the inflow/outflow of market cap but I still found it quite interesting.
During the uptrend, the correlation we found earlier gets weaker . Above $2, the volume starts to weaken. This indicates that above $2, buyers are getting wary and the volume of buyers start to dwindle.
On the other hand on the bearish side, the trading volume is a bit weaker between $1.5 and $1.9. However it jumps from about $1.9 onwards, indicating that this is more of a selling zone. At the $3 level is where everyone were trying to sell.
Based on this very high-level analysis I would predict that at the current level (around $1) XRP is at a relatively stable equilibrium. However if the price would go towards $1.5 in the near-term, it could pick up pace quite quickly and possibly find the next equilibrium at just above $2.
Note: I am an amateur trader and I am performing this exercise for my own research and analysis. This is by no means a form of financial advice and should be treated as a blog post for entertainment purposes. It is also based on historical data which may not be an indication of future price.