XRP could rally as Ripple whales buy 50 million coins in 24 hours

• Ripple whales bought over 50 million XRP tokens within a 24-hour time frame between August 26 and 27. 
• Previously, Ripple whales had shed their holdings in seven days, increasing selling pressure on the asset. 
• XRP hovers around $0.60 at the time of writing, rallies 1.12% on Tuesday.

Ripple (XRP) lost key support at $0.65 early in August. Since then the altcoin is trading sideways. Key market movers like whale accumulation, XRP supply distribution and on-chain activity are likely influencing the altcoin’s price. 

XRP extends gains by 1.12% on the day, hovering close to support at $0.60. 

Daily digest market movers: Ripple whales begin accumulating XRP again

XRP whales accumulate the altcoin

• Typically, accumulation by whales is considered bullish for the asset. When whales distribute their supply and engage in profit-taking, it increases selling pressure on the asset, like the events of August 19 and 26. 
• XRP whales are likely gearing up for an increase in the altcoin’s price. 
• Social dominance, a metric that helps ascertain the cryptocurrency’s dominance in conversations on social media platforms, rose to 2% on August 27. 
• XRP’s social dominance is at its highest level in two weeks, per Santiment data. This is indicative of higher mindshare among traders and crypto market participants. 

XRP social dominance 

Technical analysis: XRP eyes return to $0.65

XRP Ledger’s native token is in a multi-month downward trend as seen in the XRP/USDT daily chart. The altcoin slipped under $0.65, a key level, on August 3. Since then Ripple’s token failed to make a comeback. 

XRP could return to $0.6439, an important resistance level, tested a few times in the past two weeks. This represents nearly 8% gains from the current level. 

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

XRP/USDT daily chart

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