The volume of XRP tweets has a stronger correlation with the volume of exchanges than Bitcoin [BTC] or Ethereum [ETH]


The XRP community is one of the most active and passionate crypto-communities in space and, according to "The Tie" data, the XRP Tweet volume is directly related to the XRP Trade volume.

Furthermore, XRP has the strongest correlation to the dominant cryptocurrency, Bitcoin or Ethereum.

The tie tweeted:

"An interesting look at how tweets XX and trading volumes are related, it seems as if the peaks between trading and volume tweets occur in unison.In some cases it is the tweet that brings the volume peaks in trading, in others cases is the trading that brings the jumps tweet "

Source: The Tie

From the chart above, October 2, 2018, the tweet volume of XRP and the volume of exchanges increased in unison. The same happened on other occasions, as in December 2018 and also in January 2019. However, in November 2018, the volume of exchanges decreased before the volume of tweets.

Although empirical, this comparison between the volume of tweets and the volume of exchanges draws a conclusion on how the feeling of people in the community affects the trading of a particular resource.

Furthermore, the same feelings can be seen in other cryptocurrencies but with less correlation than XRP. The graph below shows the same for Bitcoin. While Bitcoin has similarities, the correlation is not as strong as that of XRP.

Source: The Tie

Ethereum has much less correlation with the volume of exchanges and the volume of tweets than XRP, as seen in the graph below.

Source: The Tie

XRP, once the second largest cryptocurrency has now fallen to become the third largest cryptocurrency by market capitalization as per data obtained by CoinMarketCap.

This comparison has attracted a lot of criticisms that have claimed that the volume of Twitter has nothing to do with the price movement.

A Twitter user, Goatmuscle commented:

"Its almost common practice for investment houses to pump shares chosen on Trading Social Media." Rampers & # 39; de & Rampers & # 39; are paid by big companies to help drive the market in a chosen direction … there are many examples on the web if you look hard enough … "

Tiffany Hayden replied:

"It is also a common practice for encryption enthusiasts to turn to Twitter for information and also to connect with others, assuming that the tweets to be pumped are wrong … It is also becoming common practice for service providers to answer questions on social media. average ".

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Akash is your usual Mechie with an unusual interest in encryption and day trading, ergo, a full-time AMBCrypto journalist. He holds XRP because of peer pressure, but otherwise he found a day of trading with that little capital he owns.

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