XRP Volatility Surges Amid Crypto Week in Congress: 13% Price Swing Expected
XRP's price is anticipated to experience significant volatility in the coming week, potentially swinging by 13%, as Congress initiates its "Crypto Week."
Implied Volatility Explained
Volmex Finance's seven-day implied volatility index for XRP has jumped to 96%, a considerable increase from the previous week's 73%, and substantially higher than its historical volatility of 42%. This surge indicates an expected 13% fluctuation in XRP's price over the next seven days. Bitcoin's volatility, in contrast, is priced much lower, with its implied volatility only slightly increasing to 46%, suggesting a 6% weekly price swing.
Key Bills Under Review
The increase in XRP's implied volatility coincides with the U.S. House of Representatives' review of three key bills affecting the digital asset sector. These include the GENIUS Act, requiring stablecoin issuers to maintain liquid reserves and undergo audits; the CLARITY Act, defining regulatory oversight between the SEC and CFTC; and the Anti-CBDC Surveillance Act, restricting a retail central bank digital currency. Regulatory clarity could benefit XRP, deemed a strategic U.S. asset by the SEC.
Expert Analysis
According to Javier Rodriguez-Alarcón of XBTO, the GENIUS Act and CLARITY Act are crucial for establishing institutional guidelines for stablecoins and defining the roles of regulatory bodies, addressing a major barrier to institutional involvement: legal uncertainty. These measures could facilitate long-term capital allocation, aligning the U.S. with regions like the UAE where regulatory frameworks are already advancing tokenized markets. The passage of these bills could broaden stablecoin adoption and regulated tokenization.
Market Momentum
While the implied volatility doesn't indicate direction, XRP is currently showing strong bullish momentum, trading 5% higher at $3, a level not seen since February.
