XRP whales purchased 340 million tokens during the past two weeks, concentrating their buying activity during each correction toward $2.90 and fueling a potential rally towards $4.
According to trader Ali Martinez, the accumulation pattern occurs as XRP confronts a critical technical juncture at $2.77. The token must maintain support to prevent a retracement toward $2.40.
Success in holding this level would position XRP to challenge the $2.90 resistance, potentially triggering an upward move toward $3.70.
The coordinated accumulation suggests confidence in XRP’s ability to break through overhead resistance from investors with deep pockets.
Rebound signs amid uncertain backdrop
Beyond the whale accumulation data, Martinez highlighted that the TD Sequential indicator shows back-to-back buy signals for XRP, suggesting a rebound setup is in play.
The technical formation adds weight to the whale buying pattern, providing both fundamental and technical support for a potential upward move.
The TD Sequential, a momentum oscillator used to identify potential reversal points, typically generates buy signals when an asset becomes oversold and positioned for a bounce.
However, the bullish signs happen amid conflicting market signals for altcoin performance.
An Aug. 25 Bitfinex report identified capital rotation from Bitcoin to Ethereum and broader altcoin markets. Institutional liquidity extended along the risk curve following Bitcoin’s consolidation near all-time highs.
While Bitcoin consolidated after reaching a price peak, Ethereum led an altcoin recovery, resulting in new all-time highs above $4,950, as ETF flows and corporate treasury demand provided support.
Altcoins stagnating
Although this momentum could flow from Ethereum to other altcoins, a Sept. 1 Bitfinex Alpha report presented a more bearish near-term outlook for altcoins.
The analysis noted that altcoin market capitalization is stagnating, with movement in individual tokens representing capital rotation rather than new inflows.
XRP, Cardano (ADA), and Dogecoin (DOGE) experienced double-digit weekly losses as risk-off behavior prevailed in the broader crypto markets.
The report warned that September could mark a cyclical low point for altcoins before structural drivers reassert themselves in the fourth quarter.
Despite the mixed backdrop, whale accumulation in XRP persists during periods of price weakness. Additionally, analysts anticipate the approval of multiple altcoin ETFs in the US in October, including those for XRP.
The report added that even if the near term turns out grim, current fundamental and technical indicators suggest a rally for XRP is likely in the coming weeks.
The post XRP prepares for potential rally toward $4 amid whale accumulation appeared first on CryptoSlate.
