Weighted Moving Average Method for Forecasting of Cryptocurrency Price: A Data Analytical Study on XRP Ripple Cryptocurrency

Abstract

The aim of this study is to develop a reliable forecasting method for cryptocurrency namely XRP Ripple Cryptocurrency. The daily price of Ripple cryptocurrency collected from 1st October 2019 until 30th November 2019. This study implemented a forecasting method of simple moving average and the weighted moving average. The mean absolute percentage error for the simple moving average is 2.75%. Meanwhile, the mean absolute percentage error for weighted moving average is 2.25%. Therefore, the weighted moving average is more reliable forecasting method for predicting the price of Ripple cryptocurrency. The finding of this study helps investors to develop an investment portfolio with lower risk and higher returns.