XRP Market Value
| XRP Crypto | USD 0.49 0.01 2.00% |
| Symbol | XRP |
XRP 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to XRP's crypto coin what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of XRP.
| 04/24/2023 |
| 04/18/2024 |
If you would invest 0.00 in XRP on April 24, 2023 and sell it all today you would earn a total of 0.00 from holding XRP or generate 0.0% return on investment in XRP over 360 days. XRP is related to or competes with Solana, Open Network, Staked Ether, Avalanche, Chainlink, Ethena, and Sui. XRP is peer-to-peer digital currency powered by the Blockchain technology.
XRP Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure XRP's crypto coin current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess XRP upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.04) | |||
| Maximum Drawdown | 24.02 | |||
| Value At Risk | (5.97) | |||
| Potential Upside | 5.17 |
XRP Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for XRP's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as XRP's standard deviation. In reality, there are many statistical measures that can use XRP historical prices to predict the future XRP's volatility.| Risk Adjusted Performance | (0.01) | |||
| Jensen Alpha | (0.15) | |||
| Total Risk Alpha | (0.39) | |||
| Treynor Ratio | (0.13) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of XRP's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
XRP Backtested Returns
XRP shows Sharpe Ratio of -0.0254, which attests that digital coin had a -0.0254% return per unit of standard deviation over the last 3 months. XRP exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out XRP's Mean Deviation of 2.89, risk adjusted performance of (0.01), and Standard Deviation of 3.92 to validate the risk estimate we provide. The entity maintains a market beta of 0.85, which attests to possible diversification benefits within a given portfolio. XRP returns are very sensitive to returns on the market. As the market goes up or down, XRP is expected to follow.
Auto-correlation | -0.56 |
Good reverse predictability
XRP has good reverse predictability. Overlapping area represents the amount of predictability between XRP time series from 24th of April 2023 to 21st of October 2023 and 21st of October 2023 to 18th of April 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of XRP price movement. The serial correlation of -0.56 indicates that roughly 56.0% of current XRP price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.56 | |
| Spearman Rank Test | -0.18 | |
| Residual Average | 0.0 | |
| Price Variance | 0.0 |
XRP lagged returns against current returns
Autocorrelation, which is XRP crypto coin's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting XRP's crypto coin expected returns. We can calculate the autocorrelation of XRP returns to help us make a trade decision. For example, suppose you find that XRP has exhibited high autocorrelation historically, and you observe that the crypto coin is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
XRP regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If XRP crypto coin is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if XRP crypto coin is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in XRP crypto coin over time.
Current vs Lagged Prices |
| Timeline |
XRP Lagged Returns
When evaluating XRP's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of XRP crypto coin have on its future price. XRP autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, XRP autocorrelation shows the relationship between XRP crypto coin current value and its past values and can show if there is a momentum factor associated with investing in XRP.
Regressed Prices |
| Timeline |
Some cryptocurrency investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. However, unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards XRP in the overall investment community. So, suppose investors can accurately measure the crypto's market sentiment. In that case, they can use it for their benefit. For example, some tools provided by cryptocurrency exchanges to gauge market sentiment could be utilized to time the market in a somewhat predictable way.
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether XRP offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of XRP's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Xrp Crypto.Check out XRP Correlation, XRP Volatility and Investing Opportunities module to complement your research on XRP. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
XRP technical crypto coin analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, crypto market cycles, or different charting patterns.