Recently, XRP's price surged past $2.95; however, the 50% decrease in active addresses raises concerns about the trend's sustainability.
XRP Price Surge and Current Indicators
XRP's price has shown a significant surge in recent weeks, increasing nearly 50%. During this time, it has overcome key levels, including the 200-day moving average around $2.14. Strong trading volume and an RSI indicator exceeding 84 suggest that the asset is overbought.
Discrepancy Between Price and User Activity
There is a significant discrepancy between XRP's price and user activity: the number of active addresses has dropped by more than 50% from its June peak. This raises concerns as active addresses reflect actual usage and liquidity, which are important indicators of sustainable demand. The cryptocurrency market often experiences sharp corrections when price deviates from address activity.
Outlook and Potential Risks
In the absence of a recovery in address activity over the next few days, classic liquidity vacuum scenarios may arise, potentially resulting in cascade liquidations with minimal selling pressure. Moreover, XRP's contentious community and regulatory volatility could influence price dynamics, increasing the risk of a sudden trend reversal.
Despite the current price surge, the drop in active addresses raises questions about the sustainability of this trend. Continued growth requires confirmation from user activity.
