XRP Surpasses Ethereum In This Major Metric After Outperforming For 6 Months
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing Strict editorial policy that focuses on accuracy, relevance, and impartiality Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Este artículo también está disponible en español. In a surprising move within the crypto market, XRP has surpassed Ethereum (ETH) in a key valuation metric: Fully Diluted Market Capitalization (FDMC). While Ethereum has been in a downtrend this bull cycle, XRP’s performance over the last six months has been nothing short of impressive, leading to it quietly overtaking the world’s second-largest cryptocurrency by market capitalization. XRP Flips Ethereum In FDMC Edward Farina, a crypto analyst and outspoken XRP supporter, took to X (formerly Twitter) on April 18 to announce that XRP has officially overtaken Ethereum in terms of Fully Diluted Market Capitalization. The FDMC represents the total potential value of a cryptocurrency if all of its tokens were in circulation. Related Reading This metric is usually calculated by multiplying a cryptocurrency’s current price by its maximum token supply. This contrasts with the more commonly referenced market capitalization metric, which only factors in circulating supply. At the time of his post, Farina reported that XRP’s FDMC had reached $208.4 billion, surpassing Ethereum’s $192.5 billion by approximately $15.9 billion. This marks over six consecutive months of XRP outperforming Ethereum in terms of projected value, signaling a potential shift in altcoin dominance between the two leading cryptocurrencies. Despite XRP’s FDMC milestone, it’s worth noting that Ethereum’s current market capitalization remains significantly higher. As of writing, ETH’s market cap is estimated at $199.14 billion, compared to XRP’s $124.3 billion, reflecting a difference of around $74.84 billion. The key reason for this discrepancy between XRP’s market capitalization and FDMC lies in its unique token structure. A significant portion of XRP’s supply is held in escrow, meaning those tokens are not yet available in the open market. While they do not count toward the circulating supply, they are included in its Fully Diluted Market Capitalization. The implication behind this distinction remains clear: if all of XRP’s tokens in escrow were unlocked and circulated today, its market value could exceed that of Ethereum. As the altcoin steadily gains momentum in valuation metrics and investor interest, it could pose a significant challenge to Ethereum’s position as the number one altcoin and second-largest cryptocurrency. Bollinger Bands Signal Major Move In The Altcoin Price The XRP price could be gearing up for a significant move upward as technical chart indicators point toward rising volatility. A recent analysis of the 4-hour chart by crypto analyst Ali Martínez shows Bollinger Bands tightening — a classic signal that often precedes a breakout. Related Reading Currently trading near the midline of the bands after a bounce from the lower support zone, XRP is now consolidating within a narrow range. The “squeeze” pattern reflects reduced volatility. While the target of the proposed price move remains uncertain, Martinez is confident that its next breakout is just around the corner. XRP trading at $2.12 on the 1D chart | Source: XRPUSDT on Tradingview.com Featured image from Unsplash, chart from Tradingview.com
5 Must-Have Volatility Filters for Your Day Trading Toolbox
Volatility is the lifeblood of day trading, creating opportunities for profit—but it can also be the source of significant risk. Understanding and managing volatility is essential for success, and one of the best ways to do this is by using volatility filters. These tools help you identify favorable market conditions, avoid unnecessary risk, and refine your trading strategy. Here are five essential volatility filters you need to add to your day trading toolbox to trade smarter and more effectively. 1. Average True Range (ATR) The Average True Range is one of the most popular tools for gauging volatility. It measures the average price movement over a specified period, giving traders an idea of how much an asset typically moves. How to Use ATR: Why It Matters: The ATR helps you stay realistic about potential price movements and avoid trades where the market isn’t moving enough to generate significant opportunities. 2. Bollinger Bands Bollinger Bands are a powerful tool for measuring volatility and identifying potential breakout or reversal points. They consist of a moving average and two bands set at a standard deviation above and below it. How to Use Bollinger Bands: Why It Matters: By showing you how much the price deviates from its average, Bollinger Bands help identify when the market is overbought or oversold, allowing you to make more informed trading decisions. 3. Volatility Index (VIX) The VIX, often called the “Fear Index,” measures market expectations of future volatility based on S&P 500 options. While primarily associated with broader market sentiment, it can help day traders assess the overall environment. How to Use the VIX: Why It Matters: The VIX provides a bird’s-eye view of market sentiment, helping you adapt your strategy to the prevailing mood. 4. Implied Volatility (IV) Implied Volatility represents the market’s expectations of future price movement, often derived from options pricing. It’s particularly useful for day traders looking to gauge potential price swings. How to Use Implied Volatility: Why It Matters: By incorporating IV into your strategy, you can align your trade sizing and risk management with the market’s expectations, improving your overall performance. 5. Moving Average Convergence Divergence (MACD) with Volatility Filter While the MACD is primarily a momentum indicator, pairing it with a volatility filter can enhance its effectiveness. This combination allows you to identify trends that align with favorable volatility levels. How to Use MACD with Volatility Filters: Why It Matters: This approach ensures that your trades are aligned with both momentum and volatility, reducing the chances of false signals in choppy markets. Building a Smarter Day Trading Strategy Adding these volatility filters to your day trading toolbox can significantly improve your ability to navigate complex markets. By understanding when and where to trade based on volatility, you reduce unnecessary risks and enhance your profitability. Key Takeaways: By integrating these tools into your strategy, you not only gain better insights into market dynamics but also increase your chances of success as a trader. Remember: Volatility is your friend when managed correctly. Equip yourself with the right tools, stay disciplined, and trade with confidence. Happy Trading!