Trading volume not increasing: XRP recently broke the 1.06 USD level, but trading volume did not increase accordingly. This leads to a divergence which could be a sign of weakening in the current price momentum. The continuous decrease in trading volume indicates inconsistency in buying interest recently.
Decline in payments and accounts: After peaking in November, XRP’s payment volume has dropped sharply along with a reduction in active accounts. This indicates that network usage has decreased, potentially reducing price support and leading to future adjustments.
RSI too high: XRP’s Relative Strength Index (RSI) has been in the overbought territory, with this index at 85, implying the market is overly inflated. This can lead to a price drop as investors decide to take profits and selling pressure increases.
Caution is necessary: Investors should be cautious and closely observe these indicators. If the price breaks the key support level of 1.50 USD and then around 1.20 USD, a more significant correction may occur. Noting these signs will help assess the sustainability of the current trend.