XRP gains from the month of February were erased over the past two weeks as the altcoin returned to its late January price at $0.23 today. The majority of the losses appear to be caused by the massive correction in traditional markets, which caused a sharp downturn for Bitcoin and many altcoins.
As reported by Cointelegraph, analysts now view the correction as a major setback, raising doubts about the future of the long-awaited bull market.
Cryptocurrency market daily overview. Source: Coin360
XRP is one of the most frequently mentioned cryptocurrencies on social media platforms, especially, Twitter. As discussed in the previous analysis, there is a relationship between the number of daily tweets mentioning Bitcoin’s (BTC) and it’s trading volume. This leaves the door open to discuss if the high number of XRP mentions on social media also influenced its volume or returns.
Relationship between tweets and XRP price since 2018?
The number of tweets mentioning XRP has been relatively consistent over time with its yearly averages since 2018 is similar. In 2018, the average number of daily tweets mentioning XRP was 5,937 daily average tweets. While, in 2019, the average daily number of tweets reduced slightly to 5,364 tweets. However, January this year had a smaller average number of tweets (5,001 tweets) with a spike — 6,919 tweets — on Jan. 6, the day XRP price gained more than 12%.
Recently, the average number of tweets observed during February has increased to 6,429 daily tweets, a much higher average than the ones seen in earlier periods.
The number of daily tweets from January 2018 until February 2020.
Following the trend of having a higher average in February, the correlation between the number of daily tweets and XRP prices in 2020 has been the highest since 2018 at 62%. Moreover, the correlation between these 2 variables this month has similar values at 60%, much higher than in January (12%).
However, this relationship has been much lower in…