XRP's price remains under pressure despite a significant increase in wallet creation across the XRP Ledger, raising questions about whether growing network activity can support a market recovery. According to blockchain analytics firm Santiment, the network recorded 7,934 new wallets on November 1, marking its sixth-highest daily total of 2026. However, XRP continues trading near $1.25, while demand indicators from US cryptocurrency exchanges and investment funds suggest investors remain cautious.
Network Growth Reaches High Levels
The XRP Ledger experienced an unexpected increase in activity as thousands of new wallets appeared over a single day. The surge followed a recent Binance security breach, which raised concerns about keeping digital assets on centralized exchanges and may have encouraged holders to move funds into personal wallets. Analysts note, however, that wallet creation does not necessarily represent thousands of new individual investors, as existing users can create multiple addresses for security or transfers.
US Investors and Exchange Demand
Despite the increase in wallet creation, American cryptocurrency trading activity presents a different picture. The XRP Coinbase Premium Index recently dropped to approximately -0.16%, marking its lowest reading in eight months. When this indicator becomes negative, XRP trades at a discount on Coinbase compared to international exchanges, which analysts often interpret as a sign of weaker relative buying pressure from US investors.
Slowdown in ETF Inflows
US spot XRP exchange-traded funds also saw a deceleration in momentum. According to SoSoValue figures, XRP ETFs attracted approximately $18.83 million in net inflows during October, representing a substantial decline from September's $121.40 million. This slowdown indicates that institutional and retail investment through regulated funds has weakened, although products did record about $8.43 million in inflows on October 29.
Technical Outlook
XRP faces a technical challenge after losing nearly 16% during October. Analysts have identified $1.30 as a potentially important recovery level and $1.20 as a key support level. A move above $1.30 accompanied by daily wallet growth exceeding roughly 4,000 addresses could strengthen the case for improving market conditions, whereas a drop below $1.20 with fewer than 3,000 new daily wallets would weaken the outlook.
