TL;DR
Ripple whales have been quite active lately, purchasing XRP worth millions of dollars in a matter of a single day.
One analyst thinks the asset could be on the verge of a rally due to the emergence of a historic price pattern signal.
Turning the Accumulation Mode on
The popular X user Ali Martinez recently shared a Santiment chart showing that Ripple whales have bought more than 50 million XRP tokens in the last 24 hours. The stash equals almost $30 million (calculated at current rates).
Whales purchasing large quantities of XRP could have certain positive implications for the asset’s value. Continuous efforts in that field will leave fewer tokens available on the market, which could be followed by a price uptick (assuming demand stays the same or rises).
Rising whale accumulation could also be interpreted as a sign of confidence and attract additional investors within the ecosystem.
As observed on the chart, whales were on a buying spree during the second half of July, with XRP’s price jumping to a nearly five-month high of over $0.65 at the time.
Large investors were reluctant to increase their holdings at the start of August when the crypto market experienced a serious crash, and XRP’s price collapsed below $0.45.
However, they turned the accumulation mode back on following the major development surrounding the legal case between Ripple and the US SEC.
As CryptoPotato reported on August 7, Judge Analisa ruled that the company must pay a $125 million fine for violating certain securities laws. While the sum may sound substantial, it represents a 94% reduction of the $2 billion that the regulator initially sought.
Many viewed the decision as a major win for Ripple, while XRP’s price briefly surged to as high as $0.64. In the following weeks, the token experienced additional volatility before settling at its current level of around $0.58 (per CoinGecko’s data).
XRP Ready for a ‘Big Move?’
Despite the asset’s wobbly performance as of late, some analysts believe a bull run could be just around the corner. The X user JD is one of those, noting that the Bollinger Bands have squeezed significantly.
“When BB gets thinner, it means a BIG move is coming! BB got thinner last two cycles that led to a 10x-650x in a year,” the analyst stated.
The technical analysis tool, introduced by John Bollinger in the early 1980s, measures potential price movements and market volatility. When the indicator’s bands are tight, it hints that the asset has experienced low volatility for an extended period and could be set for a wild move in either direction.
Another analyst predicting a rally for XRP is DustyBC. Last week, he presented a rather simple chart showing the asset rising above $2 if breaking to the upside from a flag pattern formed in the past three years. Earlier today (August 27), he doubled down on the forecast, saying he’s waiting for “the ultimate XRP breakout.”
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