According to the latest on-chain data, nearly 300 million XRP (XRP) flowed out of Binance in October, signalling increased confidence in the altcoin.

Despite a month characterized by volatility, market participants appear to be repositioning themselves ahead of what has historically been XRP’s most favorable period.

XRP Exchange Reserves Drop Ahead of Historically Strong November

CryptoQuant data showed that XRP’s balance on Binance has dropped from over 3 billion tokens to 2.7 billion since the start of October. Moreover, last week the exchange’s balance fell to its lowest level since mid-2024.

This decline isn’t limited to Binance alone. Other major exchanges such as Bybit, Gate, HTX, and OKX have also seen reductions in their XRP reserves.

XRP Exchange Balance on Binance. Source: CryptoQuant

Declining exchange reserves typically signal reduced selling pressure and growing investor confidence. It suggests that holders are moving XRP off exchanges for long-term storage, indicating accumulation, a generally bullish sign for the asset.

This trend stands out because it has emerged during one of XRP’s weakest historical periods. Data from CryptoRank shows that, over the past 12 years, XRP has closed October in the red seven times, and this year seems no different.

So far, the altcoin has dropped 7.13% in October. BeInCrypto Markets data shows that, at press time, XRP’s trading price was $2.65, down 0.0289% in the past 24 hours.

XRP (XRP) Price Performance. Source: BeInCrypto Markets

Yet, the timing of this shift in investor behavior may not be coincidental. Historically, November has been XRP’s strongest month, delivering average gains of around 88%.

With exchange reserves dropping, investors may be positioning early for a potential seasonal rebound that could erase October’s losses. The behavior of large holders and institutional interest further supports this outlook. BeInCrypto’s analysis showed that large XRP holders have increased their exposure, adding around $314 million worth of XRP.

From a technical perspective, an analyst suggested that XRP may be nearing a major price breakout. He noted that the altcoin has remained range-bound between its 2017 and 2021 highs, describing this period as a “years-long reaccumulation phase.”

According to the post, this quiet consolidation phase could precede a powerful upward move.

“You’re not ready for the next wave. This silence is a precursor to a major move. Once the structure is complete, a new parabolic wave will take hold,” the analyst wrote.

Altogether, the convergence of declining exchange reserves, renewed whale accumulation, and a favorable seasonal outlook paints a cautiously optimistic picture for XRP as it heads into November.