Volatility is measure of how likely a coin price will change. One method of measuring volatility, Historical volatility , is computed by examining past changes in the underlying coin price. Historical volatility can be computed over different periods of time. The 30 day historical volatility is the measure of volatility using prices for the past thirty days. The 30 day historical volatility measure may be quite different from the 365 day volatility, since a coin which is flat most of the year may have had recent unusual activity. Those measures of volatility can be used to imply the likelihood of future price movement over the next 30 or 365 days, respectively – assuming past volatility can predict future volatility.
Learn more about this term