Recent analysis has shown that it is the social network Twitter that has greatly influenced the price of XRP over time.
Virtual uptrend of XRP
In fact, this is not a new thing and the “crypto twitter” is working again. They have affected the last price increase that XRP has just experienced – according to recent analysis.
As of today, XRP is hovering at $ 0.23, a far cry from the 10% increase (to $ 0.33) in February. This also indicates that XRP's artificial price increase may have been going on for a long time.
Many people in the cryptocurrency space have viewed social networks as one of the driving forces behind XRP's price activity.
The average number of tweets related to XRP in 2018 is reported to be about 5,937. By 2019, however, the number of tweets has decreased slightly to 5,364.
In January of this year, the number of tweets related to XRP was reported to be 5,001. However, a huge increase soon followed and the number increased to 6,919. This number especially increased sharply on January 6, which was also the time when XRP increased by about 12%.
February saw an increase in the average number of tweets daily. Each day there are about 6,429 tweets related to XRP. This number is also higher than the average in the same period last year.
To have a better view of the correlation between tweets and XRP price, blogtienao will calculate the percentage.
- 2018: Correlation between tweets and XRP at 35%
- 2019: Correlation between tweets and XRP at -7%
- 2020: correlation between tweets and XRP price at 62%
This brings us to a big question: “Is this a new form of market manipulation?”
To survive, Ripple is forced to sell millions of XRP every month
Well-known cryptocurrency analyst Luke Martin wrote on Twitter that dumping XRP is the only way for the company to survive.
Why did Luke Martin tweet like that? The source of the attack comes from an excerpt from Ripple CEO's quote in a Financial Times article.
XRP is a “source of profit”. I do not know how to answer that, because if there is no “supply” then our profit will be less.
Therefore, the following tweet is available:
Here is a fun quote from the CEO of Ripple:@bgarlinghouse clarified "We would not be profitable or cash flow positive (without selling XRP), I think slowlyve said that. We have now. "
Dumping $ XRP on you is how Ripple stays alive. https://t.co/H2KwsANDVo
– Luke Martin (@VentureCoinist) March 1, 2020
Notably, Ripple's total XRP sales fell 80% in the fourth quarter. However, yesterday, they continued to unlock 1 billion XRP from their escrow wallet.
If the company decides to continue to discharge XRP, this could make it difficult for XRP to return to the gold age.