XRP was trading higher on Wednesday, edging toward $1.30 as improving sentiment across cryptocurrency markets coincided with increased withdrawals of XRP from exchanges by large holders. The token’s rebound also aligns with a broader recovery in digital assets after last week’s Binance-related security breach, which had pushed Bitcoin down toward a six-week low.
Data cited by CryptoQuant indicates whale activity has shifted toward removing XRP from centralized venues, which can reduce immediate sell pressure from large holders. Still, XRP remains below several key technical resistance levels, leaving investors focused on whether the rally can sustain through the next area of supply.
Key takeaways
- Price move: XRP is rebounding toward $1.30 after strengthening sentiment lifted parts of the crypto complex.
- Catalyst: CryptoQuant data showed whale net outflows rising sharply, with large holders withdrawing XRP from exchanges.
- Market implication: Exchange supply appears to be declining, but traders will watch whether spot demand can push XRP through major resistance.
- Key levels: Resistance is concentrated around $1.30 to $1.34, while $1.23 is viewed as the next meaningful support area.
What drove the move
On-chain indicators point to a notable shift in exchange balances. According to CryptoQuant data cited in the report, cumulative whale net outflows across multiple exchanges reached approximately 696 million XRP on Wednesday, compared with 399 million XRP on October 28—an increase of 74.5% over seven days.
The increase in withdrawals suggests that large holders may be reducing the amount of XRP held on exchanges, potentially lowering the pool of assets immediately available for spot selling. The same analysis also highlighted changes in relative positioning between large and smaller participants.
On Binance, the XRP Whale vs Retail Spread rose to 98.4% on Tuesday, its highest reading since October 15, 2024. By comparison, the corresponding reading across centralized exchanges was 65.1%. Investors typically view such divergence as a sign that whale-driven activity has intensified relative to retail participation.
Market reaction and why it matters
Rising whale withdrawals have supported XRP’s bounce, but the rally is also occurring alongside a wider turn in market sentiment. The report attributed part of the improved mood to developments around the US midterm elections, with the Democratic Party securing a Senate victory and moving toward broader congressional control.
Bitcoin also regained momentum, trading back above $78,000 after falling toward a six-week low near $76,000 following the $6.3 billion Binance security breach. The connection investors are watching is whether a stabilization in the broader market reduces near-term uncertainty tied to the breach and supports risk appetite in altcoins such as XRP.
Beyond election-related sentiment and the aftermath of the exchange incident, the report noted that other macro and market factors may be contributing to the rebound, including the US dollar’s performance, liquidity conditions, and investor positioning.
Technical picture: resistance at $1.30 and $1.34
Despite the recovery attempt, XRP’s chart still reflects a cautious structure. The report said XRP was trading above $1.28 but remained below major exponential moving averages, implying the broader corrective phase may not be fully over.
Near-term resistance is concentrated around $1.30, where the middle boundary of the Bollinger Bands sits. Above that level, the analysis pointed to the 100-day EMA near $1.32 and the 50-day EMA around $1.34. With these moving averages clustered in a narrow range, buyers must overcome multiple technical hurdles to strengthen the bullish outlook.
A decisive daily close above $1.34 would be the signal investors typically look for to indicate XRP is regaining control of short- and medium-term trend dynamics. Until then, rallies may remain susceptible to renewed selling.
Momentum indicators showed some improvement. The report said the RSI was hovering around 43, slightly below the neutral threshold of 50, while the MACD had turned slightly positive—signaling that downside momentum may be fading, though buyers have not clearly established dominance.
On the downside, $1.23—the lower Bollinger Band area—was identified as the next meaningful support. A break below that level could increase the risk of bearish momentum returning.
What to watch next
Whether XRP can extend higher likely hinges on two factors: continued exchange outflows from large holders and renewed spot demand capable of pushing through the $1.30 to $1.34 resistance zone. Investors will also be watching broader crypto conditions tied to the post-Binance-security-recovery narrative, alongside upcoming macro catalysts and scheduled market-moving data releases that can influence liquidity and risk appetite.
