XRP gains from the month of February were erased over the past two weeks as the altcoin returned to its belatedly January cost at $0.23 today. The majority of the losses announced to be caused by the massive correction in traditional markets, which caused a precipitous downturn for Bitcoin and many altcoins.

Every bit reported past Cointelegraph, analysts now view the correction every bit a major setback, raising doubts about the future of the long-awaited bull market.

Cryptocurrency market daily overview. Source: Coin360

XRP is i of the nigh oft 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'due south trading volume. This leaves the door open to discuss if the high number of XRP mentions on social media too influenced its volume or returns.

Relationship between tweets and XRP price since 2022?

The number of tweets mentioning XRP has been relatively consequent over time with its yearly averages since 2022 is similar. In 2022, the average number of daily tweets mentioning XRP was 5,937 daily boilerplate tweets. While, in 2022, the average daily number of tweets reduced slightly to 5,364 tweets. However, January this year had a smaller boilerplate number of tweets (5,001 tweets) with a spike — six,919 tweets — on January. six, the solar 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 Jan 2022 until February 2022.

Following the tendency of having a higher average in Feb, the correlation betwixt the number of daily tweets and XRP prices in 2022 has been the highest since 2022 at 62%. Moreover, the correlation betwixt these ii variables this month has similar values at 60%, much higher than in January (12%).

Nevertheless, this human relationship has been much lower in previous years: In 2022, the correlation betwixt the number of tweets and XRP price was fix at 35%, while in 2022, it shows almost no correlation – 7%.

A correlation of 0% means that XRP returns and the number of tweets is non related in any way. A correlation of 100% means that XRP and the number of tweets move completely in the aforementioned direction, while -100% correlation means they are inversely related.

A small positive influence on returns

The inconclusive trend seen in the correlations leads the states to utilise other analyses where we detect a small-scale significant human relationship between the daily number of tweets and XRP returns. In 2022, when the number of daily tweets increased by 1%, the XRP render on the same day increased past 0.032%. Still, in 2022, no significant human relationship is present.

A slightly higher influence is observed in the start calendar month and a half of 2022 — when the daily number of tweets would increment past one%, XRP returns would increase by 0.059%.

XRP daily price from January.ane, 2022 until Feb.18, 2022.

This stronger relationship between XRP mentions in tweets and trading volume was also reflected in the higher correlations seen in 2022 when compared to other years. Nonetheless, when looking at the influence of today's number of tweets and XRP returns tomorrow, we exercise not find a significant relationship, meaning, tweets tin can't predict future returns.

The number of daily tweets from Jan.ane, 2022 until Feb.18, 2022.

A stronger relationship between tweets and book

When it comes to the human relationship between the number of tweets and XRP daily book, a much college influence is detected. Any of the years analyzed (2018, 2022, 2022) shows a significant human relationship betwixt these variables. The strongest influence happens, again, at the kickoff of 2022 — when the number of daily tweets would increase past 1%, XRP's volume would increase by 1.215% the same twenty-four hours. This relationship is slightly lower in 2022 (0.916%) and in 2022 (0.926%).

What'south more, the relationship between the number of daily tweets today and XRP'due south volume tomorrow is also pregnant beyond the years, even though it'south slightly lower than the values observed for the same day outcome.

Once more, 2022 sees the strongest human relationship — when the number of daily tweets would increase by 1%, XRP'south volume tomorrow would increment past 0.972%. During 2022 and 2022, this relation is ready at 0.741% and 0.871%, respectively.

XRP versus Bitcoin: 2022 outlook

XRP and Bitcoin take been compared regarding other features like the correlation of both currencies to gilt. The get-go of 2022 has seen a shift in the "digital gold" narrative with XRP price having a stronger correlation to gold than Bitcoin.

Every bit published by Cointelegraph, the daily number of tweets mentioning Bitcoin influenced its daily volume whether on the same twenty-four hour period or the next day. Withal, when establishing the same parallel, in the case of XRP, a stronger relationship is constitute regarding returns in 2022 and 2022, while having comparable pregnant results for the influence of tweets in XRP volume.

Looking frontwards, investors should be enlightened of the consistency of these relationships as the year moves forward and pay attending to social metrics in the case of XRP.

Data for the number of tweets drawn from bitinfocharts.com. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves risk. You should conduct your own research when making a determination.