XRP Fights to Hold $1.25 Amid Rumors of $655M Evernorth Purchase

Precedent & Market Context

Ripple's growing institutional recognition has led to a shift in scam tactics, with scammers targeting bank names to steal assets from XRP holders. This week, a contributor warned investors about a new scheme where scammers create fake tokens and wallet addresses mimicking brands from recent announcements.

Main Event

XRP faces a critical test as Evernorth rumors fuel rally hopes, but bearish on-chain signals and negative ETF flows raise caution. A post on X suggested that Evernorth, an XRP treasury company, may purchase $655 million worth of XRP next week. The social media post went viral, sparking market activity. Bulls welcomed the news as a possible catalyst for an XRP rally in November, while skeptics argued that it was simply unsubstantiated rumor that could mislead the market.

Analysis & Market Impact

The timing of this speculation could hardly be worse. Technically, XRP is among the worst-performing assets this month. It is down 13%, erasing all gains made in September. The altcoin has slid to $1.25, its September low, testing this level as a critical support zone. A break below it is likely to spark another wave of selling, especially as market demand continues to weaken. Reinforcing this trend, spot XRP ETFs had their first negative week since July, reports SoSoValue. According to the data, spot XRP ETFs had a net outflow of $1.84 million last week, with only one day of inflows. This marked the end of a 13-week consecutive weekly inflow streak, suggesting that institutional investors’ appetite for the asset may be cooling off.

Implications & Outlook

Given the recent weakness in the structural setup of Ripple's [XRP] market structure and the amount of sell pressure on the on-chain data of major CEXs, could the new hype around Evernorth end up being a bull trap? Nothing conveys the market’s reaction to the hype better than XRP’s long/short ratio. According to data from CoinGlass, XRP’s long/short ratio has increased to 1.06, hitting its highest level in more than two weeks. This suggests traders are leaning bullish, betting on a possible bull run initiated by Evernorth’s alleged purchase of $655 million in XRP. However, with XRP’s on-chain metrics flashing bearish signals, the overall market environment still risk-off, and the institutional buying showing signs of waning, this bullish positioning appears to be highly speculative.

• XRP is struggling to hold $1.25, with a break below this level likely to spark another wave of selling.
• The recent weakness in the structural setup of Ripple's [XRP] market structure and the amount of sell pressure on the on-chain data of major CEXs raises caution.
• XRP’s long/short ratio has increased to 1.06, but this bullish positioning appears to be highly speculative.

A photo of a trader looking at a screen with XRP's price chart, with a concerned expression on their face, and a faint image of the Evernorth logo in the background, capturing the uncertainty and speculation surrounding the rumored $655M purchase.