The surge in XRP wallets holding at least 1 million tokens suggests a major breakout is possible, but its sustainability depends on overcoming weakening US institutional demand. As of November 4, 2026, the number of these 'millionaire' addresses hit a yearly high, coinciding with XRP reclaiming the $1.30 support level. While this whale accumulation typically precedes a significant price rally by reducing exchange supply, the current market environment introduces specific headwinds that could stall the move.
Following the recent price action, on-chain data reveals that large-scale holders have been aggressively accumulating XRP throughout the final quarter of 2026. This activity shows that high-net-worth investors are positioning themselves for a sustained uptrend, despite the volatility seen in the broader altcoin market. However, the price stability at $1.30 is currently being tested by a noticeable cooling in US-based spot demand, which has historically been a primary driver for XRP's liquidity.
From a regulatory and institutional perspective, the momentum provided by the initial wave of XRP spot ETFs appears to be slowing. US institutional investors are showing signs of exhaustion as ETF inflows have plateaued, reflecting a broader 'wait-and-see' approach toward crypto assets amid shifting macroeconomic conditions. This divergence between bullish on-chain whale metrics and bearish institutional flow data suggests that the current rally is largely driven by existing holders rather than new capital entering the ecosystem.
For US traders and market observers, the next few weeks are critical. If XRP can maintain its foothold above $1.30 despite the lack of institutional support, it would indicate that global retail demand is strong enough to decouple from US institutional trends. Conversely, if US demand continues to soften, the 'millionaire' wallet milestone might result in a bull trap. Investors should closely monitor the net flow of US XRP ETFs and upcoming Federal Reserve commentary, as these will likely dictate whether XRP can successfully transition from its current consolidation into a full-scale breakout.