XRP has been in a strong bull run since the crash on March 12. The bulls have been able to set a strong daily uptrend and have managed to push XRP up to $0.23 from a low of $0.10 back on March 13.
Clearly, the digital asset is doing really well but why are most market pundits still warning that XRP is ultra-bearish? It seems that XRP’s recent strength might be just that, a short-term trend that will not last much longer.
Technical Analysis Looks Good For XRP, Fundamentals Do Not
It seems like the crucial indicators for the long-term are against XRP. Looking at its on-chain statistics XRP is not doing too well.
The number of transactions on the XRP network has decreased significantly over the past 5 months after hitting an all-time high in November 2019. The number of ledgers has also decreased tremendously over the past 3 years. This is definitely concerning as it shows fewer people are interested in XRP but not over a short period of time but since 2017.
A study published in April 2020 found that XRP’s community has shrunk considerably over the past year. According to the report, in the first quarter of 2020, XRP saw a massive decline in the number of Twitter users, more than 50% since October 2018.
Furthermore, other reports have shown that the number of Telegram groups about XRP has also gone down excessively with losses of up to 75% of users in some groups.
XRP Community Members Calling It Quits
Many popular XRP supporters like Hodor, a blogger that used to cover XRP and other cryptos left abruptly. Tiffany Hayden, the ‘CEO’ of XRP also left in March stating that she would sell all her XRP coins. It is clear that XRP’s sentiment isn’t very positive right now and it will affect the price.
It seems that the only reason XRP has been in a bull run is that the entire crypto market has been going up and XRP was dragged as well. Will these fundamental problems catch up to XRP in the future?