Ripple has been displaying bullish movements over the past month, however, leadership and structural issues in the company are casting a dark cloud over its recent rally
Since its mid-March low, breaking just below $0.14, Ripple has been trending to the upside; seemingly a sign of strength for the third-largest market capped cryptocurrency.
Savvy traders over the last month and a half will have done well trading XRP. However, some have suggested that greater caution will be needed in the coming weeks.
What would be a good way to check the health of a coin? How much it was being used and how many people were using it? Yeah, that sounds pretty indicative.
Despite the bullish indicators, the coin is actually seeing a decline in it use-case and is embroiled in numerous court cases with costly settlements that have yet to be fully paid. In addition, average transactions are lower than previous peaks in 2018 and 2019 and there are fewer active ledgers holding XRP.
Whilst that might not be indicative of the coin’s current health, it is hardly something to shout about in terms of its health going forward. In order to feel positive about the future, investors will want to see an increasing number of transactions and more active ledgers holding the coin.
In more bad news for Ripple, Tiffany Hayden, the ex-CEO of Ripple was forced out in March and stated she would be selling her sizable holding of XRP; hardly a ringing endorsement for the coin’s future price maturation. However, the recent uptick in price followed in the wake of her resignation for poor performance.
Such a rebound could quite easily be a reactionary movement, however, and could be a veneer measure to cover up deeper institutional problems.
If that wasn’t enough, Ripple’s co-founder Jed McCaleb has allegedly been selling $400,000 worth of XRP each day, another sign that Ripple’s founders are uncertain about Ripple’s future pricing staying at its current levels.
Jed no longer works at Ripple and is definitely at odds with the Ripple team, having launched multiple lawsuits against his old company, as he tries to liquidate his 4.7bn Ripple. Even if you just take it at face value that Jed is just trying to sell his Ripple because he longer works there, this isn’t the sort of news prospective investors want to hear.