XRP Sheds More Blood As Momentum Dies Down

&l;p&g;&l;img class=&q;dam-image getty size-large wp-image-947893638&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/947893638/960×0.jpg?fit=scale&q; data-height=&q;640&q; data-width=&q;960&q;&g; XRP has been losing value as positive sentiment evaporates.&a;nbsp;

XRP prices have declined&a;nbsp;over the last few days, continuing a downward trend that has been taking place&a;nbsp;over roughly the last week.

The digital token has been losing value after XRP climbed more than 10% on &l;a href=&q;https://coinmarketcap.com/&q; target=&q;_blank&q;&g;CoinMarketCap&l;/a&g; February 25, a brief rally that coincided with Coinbase&s;s &l;a href=&q;https://blog.coinbase.com/xrp-will-soon-be-available-to-trade-on-coinbase-pro-b14478db7b33&q; target=&q;_blank&q;&g;announcement&l;/a&g; that it had listed the digital asset on Coinbase Pro.

The digital currency reached as little as $0.303 today, down 3.8% in the last 24 hours and more than 10% from its recent high of $0.338 hit on February 25,&a;nbsp;additional CoinMarketCap figures show.


&l;strong&g;Changing Sentiment&l;/strong&g;

This continued bloodletting has coincided with sharp changes in sentiment, according to data provided by &l;span&g;cryptocurrency analytics platform&a;nbsp;&l;/span&g;&l;a href=&q;https://thetie.io/&q; target=&q;_blank&q;&g;TheTIE.io&l;/a&g;.

The chart below helps illustrate how the relationship between the&a;nbsp;shifting mindset of traders and XRP&s;s price fluctuations.

The blue line that appears in the top half shows sentiment and its connection to price, whereas the blue line in the bottom half shows the volume of Twitter posts and trading volume.

&l;img class=&q;size-large wp-image-2815&q; src=&q;http://blogs-images.forbes.com/cbovaird/files/2019/03/XRP-Price-And-Sentiment-Data-2.25.19-3.4.19-1200×502.jpg?width=960&q; alt=&q;&q; data-height=&q;502&q; data-width=&q;1200&q;&g; The relationship between XRP&s;s price and sentiment

&q;On February 26th, Twitter Volume soared to nearly 240% of its daily average and Daily Sentiment reached 73 (on a 0-100 scale), which was very positive,&q; said&a;nbsp;Joshua Frank, cofounder of TheTIE.io.

In this case, a score of 50 would be neutral, with anything less than that considered negative.

&q;However, the optimism did not last long,&q; said Frank, &q;as both metrics peaked and nearly all of the gains were given back.&q;

Frank elaborated on this statement, emphasizing that:

&l;/p&g;&l;blockquote&g;The resurgence of Daily Sentiment, starting on Feb 27th, led the moderate recovery, but with less Tweet Volume accompanying it than the previous day. Ultimately, it faded ahead of the recent slide. At this point, both Daily Sentiment and Tweet Volume have returned to neutral and average levels, respectively.&l;/blockquote&g;

&q;This leaves XRP in an interesting position,&q; he stated.

&q;Given the recent news catalysts and community activity, Sentiment is the main metric we would look towards to get a read on likely movement going forward,&q; stated Frank.

&q;Such catalysts are reflected in Twitter conversation in nearly real-time and as a result, Sentiment is a responsive indicator of what the majority is feeling,&q; he emphasized.

&q;We would wait until Daily Sentiment reaches a healthy level above 50 before expecting another recovery.&q;

&l;em&g;Disclosure: I own some bitcoin, bitcoin cash and ether.&l;/em&g;

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