In the last 24 hours the price of XRP has dropped approximately 3%.  The drop was preceded by a huge spike in the volume of negative social chatter about the coin (as can be seen in the chart below).  The movement of 1 billion XRP coins by a “Whale” account seems to have triggered the chatter.  However, regardless of whether a Whale account was the cause, the almost immediate effect on Ripple’s market price was clear.

Examples of the relevant social media posts:

Ripple “Whale” moves the market – is the market cap fake? – #XRP #Ripple #Crypto

How can Sentiment Analysis help?

The chart above highlights that this is the 3rd time since the start of the year that Ripple has seen a massive spike in negative social chatter. In all 3 instances, the market price has then declined significantly.  Indeed, in the example in early January, the drop in price was 13% from 38 cents down to 33 cents.

Imagine if you‘d an early warning of what was about to hit XRP before most of the market?  With Causality’s new crypto sentiment alerts – you can.

If we zoom in on the above chart, we can see that if we had set a Causality crypto sentiment alert on XRP to warn when negative post volume increased by more than 40% in the last 24 hours, the alert would have been triggered at 12am on Jan 8th (UTC) when XRP/USD was at $0.36.  In fact the alert would have been triggered repeatedly for 2 days while price hovered around 36-38 cents giving the astute trader more than enough time to move before most of the market could react.


Also published on Medium