INTERNATIONAL – It’s too quiet in the cryptocurrency world.

A convergence of volatility indicators in an index tracking some of the largest digital currencies suggests that more losses are poised to come as the wide price swings experienced during this year’s downturn eased.

The Bloomberg Galaxy Crypto Index appears to have entered a new selling trend with its Bollinger Bands, a popular technical volatility indicator, signalling further declines and suggesting that the index may retest its September lows.

The difference between the bands’ upper and lower limits has narrowed drastically since January, which typically indicates very low volatility. The same is true for Bitcoin – the largest cryptocurrency – which makes up 30 percent of the index.

XRP, the cryptocurrency also known as Ripple and the index’s third-largest member, rallied last month as optimism spread around its potential use in a Ripple Labs product. 

That also spurred a rally in the Bloomberg Galaxy Crypto Index but a lack of positive catalysts since then, coupled with wider regulatory scrutiny and fears over the adoption of digital currencies, has pushed the index lower.

The Bloomberg Galaxy Crypto Index has dropped 4.6 percent since its September high. Bitcoin, Ether and XRP, which make up three-quarters of the nine-member index, have also slipped during that period. Overall, cryptocurrencies have erased more than $600 billion in market value from a January peak.