Despite the fact that all eyes have been on Bitcoin lately, the hype surrounding a rally in XRP and other altcoins has grown in recent weeks. After all, Ethereum has launched an extremely strong rally against BTC in the past few weeks and regained the support level after the support level due to institutional buying pressure via grayscale and positive fundamental news.
Luke Martin, a well-known crypto trader who was featured on CNN last year, summed up the hype well by posting the four charts shown below. Regarding them, he wrote:
“Major alts show a high correlation, with diagrams often looking identical. Some lead. Some delay. But they tend together and form tops / bottoms at the same time. EOS & XRP are only 5% behind the lows. “
These charts suggest that XRP (and EOS) could see a significant uptrend versus Bitcoin aside from a big sell-off in the crypto market. If it follows Ethereum to a T, XRP could gain 20% over the market leader.
However, there is evidence that the altcoin won’t face the strength that altcoins see across the board.
Ripple loses key executive: report
According to a report by CoinTelegraph, Ripple – the American fintech company closely associated with XRP – has just lost its head of XRP markets, Miguel Vias. Its role in generating sales of the cryptocurrency that accelerated adoption of the asset is now complete.
This is the latest in a series of executive departures from the company. Cory Johnson, chief market strategist, and Catherine Coley, who is now CEO of Binance’s US exchange, are among the other members of Ripple’s top brass players who recently looked for new roles.
A shrinking community
In addition, new data shows that the community around XRP and Ripple is beginning to shrink with the asset despite positive fundamental developments.
According to “The State of Digital Assets, Q1 2020” by eToro and The TIE, the number of Twitter users who “discussed” the cryptocurrency fell by 16% in the first quarter of this year, while the asset fell by 9% in the same quarter , 51% decreased timeframe.
In addition, the data shared by the crypto trader Zytek indicates that the number of members in cryptocentric Telegram chat rooms has dropped dramatically. For Ripple’s channel in particular, members are down 63.89% since June 2018, with the number down from 64,525 members to 23,299 today.
XRP still has harrowing technical prospects
In terms of technical analysis, many traders still believe that the chart of XRP versus the US dollar is staggering, which isn’t much better for the asset’s performance versus Bitcoin.
According to previous reports from Bitcoinist, crypto-chartist Byzantine General made this feeling clear when he shared the chart below on April 13, stressing that XRP is in a bad place from a macroeconomic standpoint.
Pointing out the “double rejection” in key horizontal support regions and the fact that XRP is currently entering a region where there is little historical liquidity, he said:
“This is probably one of the scariest charts I’ve ever seen. I wouldn’t want to put that in my pocket. “
Photo by Haidar Rais on Unsplash