XRP climbed back above $1.30 on Nov. 5 as the XRP Ledger activated a security amendment that corrected a permission flaw capable of enabling the unauthorized creation of certain issued tokens. The recovery coincided with on-chain data showing large XRP wallets at their highest count of the year, according to Santiment, while U.S. spot XRP exchange-traded funds continued to hold approximately $1.81 billion in cumulative net inflows.

The developments occurred during a broader cryptocurrency recovery. However, neither the software update nor the wallet activity establishes what caused XRP's gains.

XRP Ledger Activates Fix for Unauthorized Token Creation

The XRP Ledger activated the fixCleanup3_4_0 amendment on November 4 at 14:52 UTC, according to XRPLWin. The change took effect at ledger 108,112,129 and corrected a flaw in the network's delegated permission system. Under the previous rules, an account authorized to destroy issued tokens could create additional tokens under specific transaction conditions.

The issue centered on PaymentBurn permissions, which allow approved accounts to burn assets on behalf of issuers. Certain payments could cross a zero-balance boundary and trigger unauthorized issuance, and the new rules reject such payments.

The flaw affected issued assets, including stablecoins and Multi-Purpose Tokens, but did not touch the native XRP supply. Developers have not publicly confirmed any exploitation of the vulnerability. The XRPL release notes describe the payment restriction as a correction to the existing authorization rules, rather than a change to token supply policy.

Validator Vote Delayed Network Security Amendment

Developers incorporated the correction into XRP Ledger server version 3.4.0 in September. Protocol changes, however, require more than 80% support from trusted validators for 14 consecutive days before activation. The first approval period began on October 9, but validator backing briefly dropped below the threshold on October 21.

That interruption restarted the voting period and pushed activation into November. Until the amendment took effect, the earlier rules, including the token-creation flaw, remained in force on the network. Validators subsequently maintained the required majority for two full weeks; the earlier attempt had lasted 12 days before support fell away.

Beyond the minting fix, the amendment corrected several transaction functions, including automated market maker clawbacks, permissioned trading controls, escrow reserves, and signing procedures. It also introduced accounting corrections for proposed vault and lending features. Any protocol features still at the proposal stage, such as those vault and lending functionalities, would need to clear the same validator threshold before activation.

XRP Price Recovers as Whale Holdings Increase

XRP traded near $1.32 on Thursday after recovering from last week's decline to $1.20. The token briefly reached $1.34 during Wednesday's rally before retreating. Its latest advance followed gains across Bitcoin, Ethereum, and other major cryptocurrencies after the U.S. midterm elections.

Crypto analyst Ali Martinez reported on X that large holders accumulated roughly 60 million XRP over the preceding week. He also identified withdrawals of about 13.24 million XRP from exchanges on November 5.

Santiment counted 2,147 wallets holding at least one million XRP, the highest total this year, an increase of 28 over ten days. Separately, the network recorded 7,934 new wallets on November 1.

CryptoQuant data showed Binance XRP reserves rising by 280 million tokens between November 3 and November 5, while another measure, the exchange scarcity index, reached its highest level since 2022. Those indicators track different aspects of exchange supply.

Technical levels sit close to the current price. Resistance lies near $1.34 to $1.36, followed by $1.40; a move above those levels could open a test of $1.50. On the downside, traders are watching $1.27 and $1.25. The daily RSI stood around 50, while the MACD showed improving momentum but remained below its zero line.

XRP ETF Flows and Ripple Developments Remain in Focus

U.S. spot XRP ETFs recorded more than $500,000 in net outflows on November 2, followed by two sessions without reported net flows, according to SoSoValue. Cumulative net inflows nevertheless remained near $1.81 billion. October ended with positive flows, although monthly additions were relatively modest compared with earlier periods.

Ripple also expanded its institutional operations in October. Coinbase broadened RLUSD access across several services, while Robinhood announced plans to integrate the stablecoin through Bitstamp and other channels. BNY Mellon expanded custody support for XRP and RLUSD. Meanwhile, the Office of the Comptroller of the Currency granted Ripple final approval to establish Ripple National Trust Bank, which will support institutional custody and RLUSD reserve operations.

This article is for informational purposes only and does not constitute financial advice. Cryptocurrency prices are volatile, and market forecasts carry substantial uncertainty.

Source: The Market Periodical