Is there an XRP price rally on the horizon?

TL;DR

Ripple whales have been quite active lately, buying millions of dollars worth of XRP in a matter of a single day. One analyst believes the asset could be on the verge of a rally due to the emergence of a historical price pattern signal. Activation of accumulation mode

Popular X user Ali Martinez recently shared a Santiment chart showing that Ripple whales have bought over 50 million XRP tokens in the last 24 hours. The storage equates to nearly $30 million (calculated at current rates).

Whales buying large amounts of XRP can have certain positive implications for the value of the asset. Continued efforts in this field will leave fewer tokens available on the market, which could be followed by an increase in price (assuming demand stays the same or increases).

Increased whale accumulation could also be interpreted as a sign of confidence and attract additional investors within the ecosystem.

As seen in the chart, the whales were on a buying spree during the second half of July, and the price of XRP jumped to a near five-month high of over $0.65 at that time.

Large investors were reluctant to increase their holdings in early August, when the crypto market experienced a severe downturn and the price of XRP fell below $0.45.

However, they turned on hoarding mode again after the big 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 fine of $125 million for violating certain securities laws. While the sum may seem substantial, it represents a 94% reduction from the $2 billion the regulator was initially seeking.

Many saw the decision as a big win for Ripple, while the price of XRP briefly rose to $0.64. In the following weeks, the token experienced further volatility before settling at its current level of around $0.58 (according to CoinGecko data).

XRP Price, Source: CoinGecko XRP Ready for a “Big Move?”

Despite the asset’s shaky performance of late, some analysts believe a bull run could be just around the corner. X user JD is one of these, noting that the Bollinger Bands have compressed significantly.

“When BB thins, it means a big move is coming! BB thinned the last two cycles leading to 10x-650x in one year,” said the analyst.

The technical analysis tool, introduced by John Bollinger in the early 1980s, measures potential price movements and market volatility. When the indicator bands are tight, it indicates 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 fairly simple chart that showed the asset rising above $2 if it broke to the upside from a flag pattern formed over the past three years. Today (August 27), he doubled down on the forecast, saying he’s waiting for “XRP’s ultimate breakout.”

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