XRP’s Richest Investors Are Buying As Price Plunges 10%

As of Aug. 28, the XRP (XRP) price had declined by 10% from its local high of around $0.63, established four days ago. However, the dip seems to have not deterred XRP’s wealthiest investors, according to on-chain data that reveals that the cryptocurrency’s largest XRP holders, specifically those holding over 1 billion tokens, have steadily increased their supply during the decline.

What Does XRP Whales Accumulation Mean For Price?

The XRP supply held by entities with at least 1 billion tokens (grey) in balance has increased modestly since Aug. 24 — from 41.14% to 41.22%.

XRP whales distribution as of Aug. 28. Source: SantimentHowever, this rise coincides with the increase in the holding of lower whale cohorts, specifically among entities with a balance between 1 million and 100 million XRP tokens (brown and black).

From an on-chain analysis perspective, whale accumulation during price dips shows traders’ conviction about a potential price rebound ahead. Fundamentally, that could be due to growing euphoria around the potential rate cuts in September, as well as XRP’s relatively underbought status in the crypto market this year, as FX Empire covered here.

The recent conclusion to the SEC vs. Ripple lawsuit may also have influenced whales to return to the XRP markets.

XRP May Repeat Early August’s 50% Rebound Scenario

The XRP price dip has taken its four-hour relative strength index (RSI) to its deepest level since the Aug. 5 crash. At around 34, the RSI is just four points above the oversold threshold of 30, raising anticipations of a price rebound akin to the 50% recovery in early August.

As of Aug. 28, XRP was already showing signs of recovery, having risen by over 4% from its local low of around $0.55 (the red bar). Testing this level previously has led to 5-14% rebounds.

Should the fractal repeat, XRP’s initial upside targets will be its 200-4H exponential moving average (200-4H EMA; the blue wave) and the lower trendline of its prevailing ascending triangle pattern.

Reclaiming the ascending triangle pattern will likely enable XRP to continue its recovery toward the channel’s upper trendline, which is around $0.62. A breakout, on the other hand, helped by the Fed rate cut prospects, could push XRP’s price toward $0.69.

Watch the in-depth video below to analyze the ascending triangle breakout setup in the XRP market.