Evernorth’s $1B XRP Accumulation Plan Drives Price Despite Upcoming 1B Token Unlock

Quick Take

• XRP trading at $2.50 (down 0.2% in 24h)
• Evernorth’s $1B fundraising announcement for XRP treasury accumulation provides bullish catalyst
• Price testing support above 20-day moving average at $2.48
• Broader crypto weakness weighing on XRP price momentum

Market Events Driving Ripple Price Movement

The most significant development for XRP this week came from Evernorth, a Ripple-backed crypto venture, announcing plans to go public and raise over $1 billion specifically to accumulate XRP tokens. The firm aims to merge with Armada Acquisition Corp II, positioning itself to become the largest publicly traded company with XRP holdings as a primary treasury asset. This institutional adoption narrative provided a 3% boost to XRP price earlier in the week.

However, today’s trading reflects mixed sentiment as investors prepare for Ripple’s scheduled release of 1 billion XRP from escrow on November 1st. This monthly unlock, valued at approximately $2.48 billion at current prices, historically creates short-term selling pressure despite being a known event. The scheduled release represents standard protocol operations but adds supply-side pressure during an already volatile period.

Supporting the longer-term bullish case, on-chain data revealed a 3.36% decrease in XRP exchange balances since early October. This metric typically signals accumulation by large holders who move tokens off exchanges for long-term storage, reducing immediate selling pressure and supporting XRP price stability.

XRP Technical Analysis: Consolidation Phase

Price Action Context

XRP price currently trades at $2.50, finding support just above the 20-day moving average at $2.48. The token remains below its 7-day average of $2.56, indicating recent weakness, while sitting significantly below the 50-day moving average at $2.72. This positioning suggests XRP is in a consolidation phase rather than a clear directional trend.

Trading volume on Binance spot market reached $214 million in 24 hours, representing moderate institutional interest. The current price action shows XRP following broader cryptocurrency market sentiment rather than establishing independent momentum.

Key Technical Indicators

The RSI reading of 46.07 places XRP price in neutral territory, neither oversold nor overbought, allowing room for movement in either direction. More encouraging for bulls, the MACD histogram shows a positive reading of 0.0195, suggesting building bullish momentum despite the overall MACD remaining negative at -0.0463.

Bollinger Bands analysis reveals XRP trading in the upper portion of its range, with a %B position of 0.5629, indicating the token sits above the middle band but has room to move toward the upper band at $2.69 without reaching overbought conditions.

Critical Price Levels for Ripple Traders

Immediate Levels (24-48 hours)

• Resistance: $2.70 (upper Bollinger Band and recent rejection level)
• Support: $2.48 (20-day moving average and current pivot point)

Breakout/Breakdown Scenarios

A break below $2.48 support could trigger selling toward the next major support at $2.19, representing the lower boundary of the current trading range. Conversely, clearing resistance at $2.70 would target the immediate resistance zone around $2.85 before approaching the stronger resistance level at $3.19.

XRP Correlation Analysis

XRP price movement continues following Bitcoin’s lead, with both assets experiencing modest weakness today. The correlation remains strong as institutional investors treat XRP as part of broader cryptocurrency allocations rather than an independent asset class.

Traditional market factors show limited direct impact on XRP price today, though general risk-off sentiment in equity markets contributes to cryptocurrency weakness. The token’s performance diverges slightly from smaller altcoins due to its institutional adoption narrative from the Evernorth announcement.

Trading Outlook: Ripple Near-Term Prospects

Bullish Case

XRP price could benefit from successful completion of Evernorth’s public listing and subsequent XRP accumulation. A sustained hold above $2.48 support, combined with broader cryptocurrency market recovery, could drive the token toward $2.70 resistance. The decreasing exchange balances suggest reduced selling pressure from long-term holders.

Bearish Case

The November 1st escrow unlock creates immediate supply pressure that could push XRP price below $2.48 support. Broader cryptocurrency market weakness or delays in Evernorth’s fundraising could eliminate the current bullish catalyst, potentially driving the token toward $2.19 support.

Risk Management

Traders should consider stop-losses below $2.45 to protect against breakdown scenarios, while position sizing should account for the 14-day average true range of $0.15, indicating moderate but significant daily volatility. The upcoming escrow unlock suggests reduced position sizes may be prudent through early November.

Image source: Shutterstock