XRP moved higher on November 5, gaining around 2% to trade near $1.31 as the broader cryptocurrency market recovered and blockchain data pointed to increased activity among large holders.
The rebound came alongside gains in Bitcoin, Ethereum, Solana and BNB, suggesting that XRP’s move was partly supported by improving sentiment across the wider crypto market.
At the same time, analysts reported rising whale balances, exchange withdrawals and a growing number of wallets holding at least 1 million XRP.
However, exchange data remains mixed, and XRP still needs to break through several resistance levels before the latest recovery can develop into a stronger uptrend.
XRP price recovers toward $1.31
XRP rebounded from its recent decline toward the $1.25 area and traded close to $1.31 on November 5.
The move followed a broader recovery across major cryptocurrencies.
Bitcoin climbed back above $80,000, while Ethereum traded near $2,400.
Solana gained around 3%, and BNB moved higher toward $716.
Because several major cryptocurrencies rose at the same time, XRP’s gain cannot be attributed entirely to token-specific developments.
Improving risk sentiment across the market appears to have played an important role.
XRP whales reportedly added 60 million tokens
One factor attracting attention is increased accumulation among large XRP holders.
Crypto analyst Ali Martinez reported that major holders accumulated approximately 60 million XRP during the previous week.
At a price around $1.31, that amount would represent tens of millions of dollars in XRP.
The accumulation suggests some large wallets have been increasing their exposure during the recent market weakness.
However, wallet movements alone do not reveal the exact motives of the owners.
Large balances can belong to individual investors, institutions, exchanges, custodians or other entities.
More than 13 million XRP reportedly left exchanges
Martinez also reported that roughly 13.24 million XRP moved out of exchanges around 01:00 UTC on November 5.
Exchange withdrawals are often watched because tokens moved away from trading venues may no longer be immediately available for sale.
If investors are moving XRP into long-term storage, reduced exchange supply could potentially limit selling pressure.
However, a withdrawal does not prove that an investor intends to hold the tokens.
Assets may also be transferred to another exchange, custodian, market maker or private wallet.
For that reason, exchange outflows should be viewed as an indicator of movement rather than direct proof of bullish accumulation.
Whale accumulation and exchange withdrawals may be separate
Martinez noted that it was not possible to establish whether the XRP accumulated by whales was the same XRP leaving exchanges.
That distinction matters.
Two datasets can move in a bullish-looking direction without necessarily describing the same transaction.
For example, one investor could move XRP away from an exchange while another large holder purchases tokens elsewhere.
The combined picture may still indicate stronger large-holder activity, but analysts cannot automatically connect the two events without additional wallet-level evidence.
XRP millionaire wallets reach 2026 high
Santiment reported another potentially bullish development.
According to the analytics platform, 2,147 wallets now hold at least 1 million XRP.
That is reportedly the highest number recorded in 2026.
The group increased by 28 wallets over a 10-day period, including 18 new millionaire wallets during the most recent three days.
The increase suggests more blockchain addresses are crossing the 1 million XRP threshold.
However, one wallet does not necessarily equal one person.
A single investor or institution can control multiple addresses, while an exchange wallet can represent holdings belonging to many customers.
XRP address growth continued despite recent weakness
The increase in large wallets follows recent growth in the broader XRP address count.
Santiment previously recorded nearly 7,934 new XRP addresses on November 1, even as the token traded close to $1.25.
Address growth during a price correction can suggest that new participants are entering the ecosystem or existing users are creating additional wallets.
Still, address creation alone does not tell investors whether those wallets are buying, selling or simply moving existing balances.
It is therefore most useful when considered alongside other metrics.
Binance XRP supply data sends mixed signals
Exchange data from Binance provides a more complicated picture.
A CryptoQuant contributor reported that Binance’s XRP Scarcity Index reached approximately 2.1 on November 5.
That was described as the highest level for the indicator since 2022.
The index had remained negative throughout September and October before turning positive.
A higher scarcity reading can suggest that immediately available XRP liquidity on the exchange is tightening.
However, separate reserve data appears to show Binance holding significantly more XRP overall.
Binance XRP reserves increased by 280 million tokens
Another CryptoQuant contributor reported that Binance’s XRP reserves climbed from approximately 2.35 billion XRP on November 3 to 2.63 billion XRP on November 5.
That represents an increase of roughly 280 million XRP in two days.
Large-transfer netflows reportedly also shifted significantly.
The measure moved from negative 226 million XRP on October 29 to positive 273 million XRP on November 4.
These figures appear different from the scarcity signal because they measure different aspects of exchange activity.
An exchange can hold more XRP overall while the amount available within particular liquidity conditions changes.
Binance reserve restoration may explain some inflows
The increase in Binance’s XRP reserves comes after the exchange’s major October 29 security breach.
Binance has been rebuilding reserves and restoring backing across affected assets.
CryptoQuant contributor Amr Taha connected the recent XRP reserve increase to that recovery effort.
However, the exact source of the latest XRP inflows remains unverified.
That means the additional reserves should not automatically be interpreted as normal investor deposits or a bearish signal.
Some of the movement may instead reflect Binance’s efforts to restore exchange balances after the security incident.
Why exchange reserve data can be difficult to interpret
Exchange reserves are often interpreted as a measure of potential selling pressure.
When large amounts of cryptocurrency move onto an exchange, traders sometimes assume those assets could soon be sold.
When reserves decline, the opposite interpretation is often made.
But those assumptions are not always correct.
Exchanges may move assets between internal wallets.
They may rebuild reserves following operational disruptions.
Market makers can also deposit large balances for liquidity purposes.
The meaning of a reserve change therefore depends heavily on the reason behind the transfer.
XRP may be forming an inverse head-and-shoulders pattern
Martinez has also identified a potentially bullish technical pattern on XRP’s daily chart.
According to the analyst, XRP may be forming the right shoulder of an inverse head-and-shoulders pattern.
This chart structure is typically interpreted as a potential reversal formation after a prolonged decline.
Martinez is watching $1.60 as the neckline.
A confirmed break above that level could strengthen the pattern.
The analyst identified $2.10 as a possible subsequent target if the breakout occurs.
Neither level has been reached, meaning the pattern remains unconfirmed.
XRP first needs to clear closer resistance
Before XRP can test $1.60, it faces several nearer resistance levels.
The immediate resistance area sits around $1.34 to $1.35.
Above that, traders are watching $1.40.
A sustained break through those areas could bring $1.50 into focus.
Only after clearing these nearer barriers would a move toward the $1.60 neckline become more realistic.
$1.25 to $1.30 remains important support
XRP recently recovered from the $1.25 to $1.30 region.
That area is now an important short-term support zone.
If buyers continue defending it, the token may have another opportunity to challenge $1.35 and $1.40.
A break below $1.25 would weaken the recovery setup.
In that scenario, the next major support could emerge around $1.20.
RSI points to improving momentum
XRP’s Relative Strength Index stood near 50.30 on the daily chart.
The RSI had risen above its moving average of roughly 40.99.
A reading around 50 suggests momentum has returned to a more neutral position after previously favoring sellers.
It also means XRP is not currently in overbought territory.
A continued rise above 50 could provide stronger evidence that buyers are gaining control.
MACD has turned more constructive
XRP’s MACD indicator has also shown signs of improvement.
The MACD line stood around -0.02556, above the signal line near -0.03204.
That crossover produced a positive histogram reading.
A positive histogram can indicate improving short-term momentum.
However, both lines remained below zero.
This means the indicator has improved but has not yet confirmed a sustained bullish trend.
Another analyst sees a possible Elliott Wave recovery
Crypto analyst CryptoBullet has suggested that XRP’s recent correction may have completed its second Elliott Wave.
Under that interpretation, XRP could be entering the early stages of a third upward wave.
The analyst is watching the 350-day moving average for confirmation.
A break above that longer-term level would strengthen the bullish argument.
As with other technical projections, this remains an analyst interpretation rather than a guaranteed market outcome.
XRP ETF flows remain another factor
Recent XRP market analysis has also highlighted weakness in ETF demand.
Spot XRP ETFs reportedly recorded around $529,510 in net outflows on November 2.
That figure is relatively small compared with the flows seen in larger Bitcoin ETFs, but it still provides another measure of investor demand.
If XRP ETF flows return to consistent inflows while whale balances continue increasing, the combination could offer stronger evidence of broader accumulation.
Continued outflows would leave the recovery more dependent on spot-market buyers.
What is driving XRP higher today?
The latest XRP increase appears to reflect several factors operating together rather than one clear catalyst.
The broader cryptocurrency market is recovering.
Large XRP holders appear to be accumulating tokens.
The number of addresses holding at least 1 million XRP has reached a 2026 high.
Some XRP has also moved away from exchanges.
At the same time, technical indicators show improving momentum after the recent correction.
However, the conflicting Binance reserve data means the exchange-supply story is more complicated than a simple shortage of XRP.
What would make XRP’s rebound stronger?
A more convincing recovery would require XRP to break through its immediate resistance levels.
The first challenge is approximately $1.34 to $1.35.
A move above $1.40 would provide further confirmation.
If buyers can push XRP through $1.50 and eventually $1.60, the potential inverse head-and-shoulders pattern would become more relevant.
Additional whale accumulation and stronger spot demand would also strengthen the case.
What could weaken XRP’s recovery?
The bullish setup would become less convincing if XRP loses the $1.25 support level.
A return below that area could expose $1.20 and suggest that the latest rally was only a temporary rebound.
Broader crypto market weakness could also put XRP back under pressure.
Whale balances alone may not be enough to support the price if Bitcoin and the wider market begin falling again.
What’s next for XRP?
XRP’s latest move above $1.30 is encouraging for buyers, particularly as whale balances and large-wallet counts increase.
Momentum indicators are also improving.
However, the token remains close to significant resistance rather than in a confirmed breakout.
The $1.34 to $1.40 region is the immediate test.
If XRP can clear that area and maintain support above it, the market could begin focusing on $1.50 and the potential $1.60 neckline.
If buyers lose control below $1.25, the recovery case would weaken considerably.
For now, XRP is benefiting from a combination of broader crypto market strength, increased large-holder activity and improving technical momentum.
Whether those factors can sustain the rally will depend on what happens at the next major resistance levels.
Disclosure: This article does not constitute investment advice. The content is provided for educational and informational purposes only.
