XRP Flashes a Buy Signal, Supported by a $1.2B Whale Buyback

• Crypto analyst Ali Martinez points out that a buy signal has been generated on the XRP hourly chart by the TD Sequential indicator
• Historically speaking, this pattern has hinted at potential rebounds in the past
• XRP is currently priced at $2.89, which is a roughly 10% decrease in the timespan of the last 7 days

According to the crypto analyst Ali Martinez, the TD Sequential indicator has generated a buy signal on the XRP hourly chart. Essentially, this showcases that the recent downward trend may have run its course, possibly setting the stage for a short-term upswing.

Historically speaking, the pattern that Martinez shared has hinted at potential rebounds in the past.

TD Sequential is a trading indicator that counts price bars (candles) to identify points where a trend is getting tired and is likely to pause or reverse. For XRP, the chart shows a sharp price dip followed by a buy signal.

Related: The Same Analyst Who Called XRP’s Top Says It’s Now Time to Buy the Dip

However, because this signal emerged on the 1-hour timeframe, there is always the possibility of the rebound being modest or short-lived.

Last month, similar bullish signals were seen on XRP’s 4-hour and longer-term charts, strengthening the case for a potential rebound as the asset moves through a period of price consolidation.

In July, XRP rallied notably, reaching an all-time high of about $3.6. From then on, it’s been slowly going downwards. At the moment, it’s priced at $2.89, which is roughly a 10% decrease in the last 7 days.

XRP price movement and whale activity

The market has witnessed a lot of price movement in the last 30 days or so, with whale activity being strong as well.

For instance, following Ripple’s long-standing lawsuit resolution against the SEC, $20 billion in whale inflows flooded into XRP. In July, whale activity hit record highs, with 2,743 wallets holding at least 1 million XRP each, totaling over 47.3 billion tokens. One week alone saw whale purchases of approximately $915 million in XRP.

Also, an estimated $2.86 billion worth of XRP was sold to exchanges in the last few weeks of July, signalling standard profit-taking after its all-time high. That said, the market did rebound with $1.2 billion in buybacks.

The Bitcoin Dominance Factor

It’s worth noting that XRP’s trajectory is closely tied to Bitcoin’s price action and market dominance. Dips in Bitcoin dominance often coincide with XRP gains, and vice versa.

Related: Analyst Provides Level-Based Roadmap for XRP’s Bull and Bear Scenarios

Lately, Bitcoin dominance is decreasing, with it currently being 58.7%, down from around 65% at the start of July.