Ripple whale build-up could catalyze XRP gains

• Ripple whales bought over 50 million XRP tokens in a 24-hour span from August 26-27.
• Earlier, Ripple whales gave up their holdings in seven days, increasing selling pressure on the asset.
• XRP is around $0.60 at the time of writing, up 1.12% on Tuesday.

Ripple (XRP) lost key support at $0.65 in early August. Since then, the altcoin has been trading sideways. Key market drivers such as whale accumulation, XRP supply distribution, and on-chain activity likely influence the altcoin price.

XRP extends gains by 1.12% on the day, approaching support at $0.60.

Daily Market Reasons: Ripple Whales Start Hoarding XRP Again

XRP whales hoard altcoins

• Usually, the accumulation by whales is considered bullish for the asset. When whales distribute their supply and engage in profit taking, selling pressure on the asset increases, such as the events of August 19 and 26.
• XRP whales are likely gearing up for a rally in the altcoin’s price.
• Social dominance, a measure that helps establish cryptocurrency dominance in conversations on social media platforms, rose to 2% on August 27.
• XRP’s social dominance is at a two-week high, according to Santiment data. This indicates greater sentiment among traders and crypto market participants.

XRP Social Dominance

Technical Analysis: XRP Eyes Back at $0.65

XRP Ledger’s native token has been in a downtrend for several months, as seen on the XRP/USDT daily chart. The altcoin dipped below $0.65, a key level, on August 3. Since then, the Ripple token has failed to make a comeback.

XRP could bounce back to $0.6439, an important resistance level tested several times in the past two weeks. This represents gains of nearly 8% from current levels.

Ripple could rally towards $0.6602, the 50% Fibonacci retracement of the decline from the July 2023 high of $0.9380 to the July 2024 low of $0.3823. The Relative Strength Index (RSI) is above 50 on the daily time frame, which moderately supports a bullish thesis for Ripple.

XRP/USDT Daily Chart

The altcoin could find support in the disequilibrium zone between $0.5188 and $0.5785 if there is a correction in XRP. A further decline could push the altcoin closer to testing the August lows of $0.4319.