Keyword density should not be more than 1.5 % on a webpage for a quality content. Webpage having less than 2% is reckoned a Quality content. Search Engines now give more importance to quality content.
You may be checking ranking on Google.com only select various country in search setting will give you different result. Website traffic might have down in some other country.
Check Google analytics for better insight.
Search phrases with longer word counts are called long tail keywords.
Long tail keyword are targeted to rank on top of search engine as the have lower competition as compared to short tail keywords.
You can use free tools for checking competitor backlinks such as seoreviewtools, smallseotools and many more free and paid sites can be searched on the Internet.
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