XRP has doubled its value since the March 12 market crash.
The XRP has been on a strong rise since the fall of March 12. The bulls managed to establish a strong daily bullish trend and managed to push the XRP to $ 0.23, compared to a $ 0.10 low on March 13.
Clearly, the digital asset is doing very well, but why do most market experts still warn that XRP is extremely pessimistic? It seems that the recent strength of XRP may be just that, a short-term trend that will not last long.
Technical analysis looks good for XRP, the fundamentals are not
It seems that the crucial indicators for the long term are against XRP. Looking at its on-chain statistics, XRP is not doing very well.
The number of transactions on the XRP network has significantly decreased in the last 5 months after reaching the highest historical level in November 2019. The number of ledgers it has also decreased tremendously in the past 3 years. This is definitely worrying, as it shows that fewer people are interested in XRP, not in a short period of time, but since 2017.
A study published in April 2020 found that the XRP community has shrunk considerably in the past year. According to the report, in the first quarter of 2020, XRP recorded a massive decline in the number of Twitter users, more than 50% since October 2018.
In addition, other reports have shown that the number of Telegram groups on XRP has also declined excessively, with losses of up to 75% of users in some groups.
XRP community members who abandoned the boat
Many popular supporters of XRP, like Hodor, a blogger who used to cover XRP and other crypts, abandoned the boat. Tiffany Hayden, the “CEO” of XRP also left in March, saying she would sell all of her XRP coins. Of course, XRP sentiment is not very positive at the moment and will affect the price.
It seems that the only reason XRP was on the rise is that the entire crypto market is rising and XRP has also been dragged. Will these fundamental problems reach XRP in the future?