Analysis of Price volatility in Decentralized Shifts: A Case Study of Cryptocurrency
The world of cryptocurrencies has undergone an unprecedented growth and adoption in the last decade. However, with this increased popularity coming an increase in market volatility. Descentralized Exchanges (DEX), But what determines the fluctuations of prices on these platforms? And how can investors browse the constantly changing landscape of cryptocurrency markets?
Introduction
The prices of cryptocurrencies are notorious sensitive to market feelings and events. Dexs.
Case Study: Bitcoin (BTC)
Cryptocurrency, binance. Influence price.
Analysis data
Cryptocurrency Exchange (BTC), Ethereum (ETH) and Litecoin (LTC). The data were analyzed using technical indicators, such as Mobile Environments, relative Resistance Index (RSI) and Bolninger Bands, to identify the trends and models in price movements.
Trends
Our analysis revealed that the last 12 months have registered a significant decrease in Bitcoin prices. On Average, the BTC/USD Pair decreased by 25% during this period. However, I also noticed an increase in RSI values, which indicates purchasing conditions. This suggests that investors can be excessive, which could lead to additional price drops.
Volatility Values
We calculated several volatility values for each cryptocurrency, including:
* In motion the Divergence of Average Convergence (MACD) : a momentary indicator measuring the difference between two mobile environments.
* Bollinger Bands
: A volatility -based indicator that plots a motion in motion and a standard deviation above and below it.
* The media in exponential movement (EMA) : a smooth price level based on the exponential weighted mobile media.
These values helped us to identify high and low volatility periods. The MacD Line Crossed Over the 9 Periods during the Periods of High Trading Activity, indicating potential purchase or sale opportunities. Similarly, the bolninger bands were pushed to their extremes during Periods of extreme volatility.
Case Study: Ethereum (ETH)
Ethereum (ETH) has also experienced significant fluctuations in the exchange of binnances. Our analysis Revealed that ETH/USD Prices decreased by 15% over a similar period to bitcoin decline. However, we have noticed more frequent and intense price changes in eth.
Volatility Values
Similar to our previous case study, we have calculated several volatility values for each cryptocurrency:
* MacD :
* Bollinger Bands : Bollinger Bands were pushed to their extremes during.
Factors That Influence Price Fluctuations
Our analysis has revealed several factors that influence price fluctuations: dex:
* Sent of market : Our data showed a strong correlation between market feeling and price movements. When the market feeling was negative, the prices tended to fall.
* Event -Based Transactions : The Fequency of Event -Based Transactions (for example, short -term sale or margin trading) can significantly affect price movements.
* Trading volume : High trading volumes tend to be associated with higher prices volatility.