XRP is recovering alongside the broader crypto market, and analyst Ali Martinez believes several signals are starting to line up for a potentially larger move.

Bitcoin has recovered above $80,000, Ethereum is back around $2,400, and XRP traded near $1.31 as risk appetite returned to crypto. XRP was up roughly 4.7% over 24 hours during Thursday’s rebound.

Martinez now points to three developments behind his bullish XRP setup: a large exchange outflow, accumulation by major holders, and a potential inverse head-and-shoulders pattern.

But the chart still has one important hurdle.

XRP needs to break $1.60.

What you'll learn 👉

13.24 Million XRP Leaves Exchanges

Martinez cited Santiment data showing an unusually large XRP exchange outflow around 01:00 UTC on November 5.

Approximately 13.24 million XRP was withdrawn during that period.

At an XRP price near $1.31, those tokens are worth roughly $17.3 million.

2/5 Today, XRP exchange outflows spiked. Around 01:00 UTC, roughly 13.24 million $XRP were withdrawn from exchanges, potentially reducing the supply immediately available to sell. https://t.co/PG3Y33f1Yx

Exchange withdrawals can be bullish because coins moved away from trading platforms are no longer as readily available to sell. However, an outflow does not prove that every token is being moved into long-term storage. Transfers between exchanges, custodians and private wallets can also affect the data.

Still, the timing becomes more interesting when combined with Martinez’s second observation.

XRP Whales Have Added Around 60 Million Tokens

Martinez says some of XRP’s largest holders have increased their balances by approximately 60 million XRP over the past week.

That is roughly $79 million worth of XRP at current prices.

He also makes an important distinction: there is no evidence that the 60 million XRP accumulated by large holders is the same XRP that left exchanges.

The two datasets should therefore be treated as separate signals.

Taken together, however, they point in the same direction: less XRP sitting on exchanges at the same time that large balances are growing.

This also comes after Santiment recently reported improving XRP network growth and rising activity around large holders, adding another element to the accumulation argument.

XRP Chart Puts $1.60 at the Center of the Setup

The most interesting part of Martinez’s prediction is not the exchange data.

It is the price structure.

He believes XRP may be developing the right shoulder of an inverse head-and-shoulders pattern on the daily chart.

The pattern is commonly viewed as a potential bottoming formation, but it is not confirmed simply because a right shoulder appears.

For Martinez, confirmation comes around $1.60, where he places the neckline.

That is still a substantial move from current levels. XRP would need to gain roughly 22% from $1.31 just to reach $1.60.

There are also obstacles before then.

Recent technical data places XRP’s 100-day EMA around $1.33, its 50-day EMA near $1.34 and the 200-day EMA around $1.37. XRP therefore has a cluster of resistance immediately above its current price.

Clearing $1.33-$1.37 would be the first useful test of the recovery.

Read also: XRP Rich List: How Much XRP Do You Need to Be in the Top 1%?

Could XRP Reach $2.10?

Martinez identifies $2.10 as the potential target if XRP breaks the $1.60 neckline and confirms the inverse head-and-shoulders pattern.

From $1.60, that would represent another gain of roughly 31%.

From the current $1.31 area, $2.10 would mean an overall rally of about 60%.

That target should not be treated as active yet.

The bullish sequence would look more like this:

XRP first needs to clear the $1.33-$1.37 resistance cluster, continue toward $1.60, and then decisively break the neckline.

Until that happens, the inverse head-and-shoulders remains a potential setup rather than a confirmed breakout.

Still, Martinez now has more than price structure supporting his case.

A 13.24 million XRP exchange outflow, roughly 60 million XRP of reported whale accumulation and a recovering broader crypto market give bulls several signals to watch at the same time.

The chart now has to finish the job.

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