XRP (XRP) has been on a continuous downward correction over the past couple of days. The sideways trading of the digital currency began last week, and it has flowed into this week. XRP (XRP) began its downward correction after it saw gains of over 12 percent on the 25th of February. The sharp price increase of the digital currency came after the announcement of Coinbase. Coinbase announced that the digital currency is now available for trade on its professional trading platform – Coinbase Pro.
XRP Fails to Sustain Gains after Coinbase’s Announcement
After the announcement, XRP (XRP) surged to a high of $0.339 in less than a day. However, the digital currency has now lost more than ten percent of its value since then. There is also a coincidence between sharp changes in sentiment and the continued price shed. This was revealed in data provided by TheTIE.io – a digital currency analytics platform.
There is also a relationship between the price fluctuation of XRP and the shifting mindset of traders. This was also revealed by the digital currency analytics platform. On the 26th of February, Twitter Volume surged to about 240 percent of its twenty-four hours average. Daily Sentiment also surged to 73 (on a scale of 0 to 100), which is highly positive, says Joshua Frank. Frank is the co-founder of TheTIE.io.
In a situation like this, 50 would be a neutral score. Anything less than 50 would be considered negative. However, Frank said that the optimism didn’t last long. He said the two metrics peaked and almost all the gains amassed were lost. He gave further details about this and said that:
“The resurgence of Daily Sentiment, which began on the 27th of February, resulted in the slight recovery. But it was accompanied by less Tweet Volume than the previous day. Interestingly, it faded before the recent price plunge. At this point, both Tweet Volume and Daily Sentiment have made their way back to average and neutral levels respectively.”
This leaves the third largest digital currency in the world – XRP (XRP) – in a fascinating position, Frank added. In another statement, he said:
“Considering the recent activity of the community and news catalysts, our main focus should be on Sentiment. We should look towards Sentiment to get an idea on likely movement going forward.”
While the value of XRP (XRP) surged higher after the initial announcement of Coinbase, the digital currency lacks momentum to hold gain. Coinbase initially announced that it would add XRP (XRP) to Coinbase Pro. The value of XRP (XRP) responded to this announcement positively. However, the digital currency failed to respond positively when the trading platform announced it has added the coin to Coinbase Pro.
Rather, XRP (XRP) was trading in the red after the announcement. XRP (XRP) has been trading in the red since the announcement. The digital currency has lost a considerable fraction of its value, and it’s now trading close to the 30 cents level.
XRP (XRP) Price Today – XRP / USD
At the time of writing, XRP (XRP) is changing hands at $0.303 after a decrease of about one percent over the past twenty-four hours. The current market cap of the digital currency is $12.56 billion and it’s trading volume over the past twenty-four hours is $579.06 million. The digital currency needs more bullish traction to return to its previous levels.