XRP has remained below the $2 mark for over a week, indicating that selling pressure remains dominant and the risk of a further decline has not been eliminated.
This development has caused significant losses on the books for many holders, especially Treasury companies accumulating XRP. Meanwhile, flows from Spot ETFs have moved in the opposite direction, continuing to accumulate and creating a mixed picture of institutional sentiment.
- Evernorth shifted from an unrealized gain of $71 million to an unrealized loss of $225 million as XRP fell from $2.60 to $1.80.
- The XRP Spot ETF has continued to record net Capital every day since its launch, with total net assets reaching $1.25 billion at the time of recording.
- Selling pressure from retail investors and whales is making XRP price structure fragile; the $2 mark is the threshold that needs to be reclaimed for a reversal.
Evernorth recorded an unrealized loss of $225 million.
Evernorth's unrealized losses increased to $225 million after XRP sharp decline, reversing its previous unrealized gains of $71 million.
From October 22nd to December 24th, Evernorth purchased 388.7 million XRP , totaling approximately $947.1 million. This chain of purchases makes Evernorth the largest publicly listed company exclusively focused on an XRP accumulation strategy.
Amidst the general downturn in the cryptocurrency market, the price of XRP fell from $2.60 to $1.80. This drop pushed Evernorth's portfolio value below its Capital basis, transforming its $71 million unrealized profit into a $225 million unrealized loss.
According to analyst Maartunn , the reversal in book profits reflects fragile market conditions and increases the risk of capitalization if the pressure continues.
Behaviorally, long-term investors such as Treasury companies tend to hold on, waiting for a recovery. However, those holding positions with weak psychological sentiment may panic and sell when prices fall below key psychological levels like $2.
The XRP Spot ETF continues to accumulate.
Despite Evernorth incurring significant losses, XRP Spot ETFs continued to record net Capital , with total net assets reaching $1.25 billion at the time of recording.
XRP Spot ETFs are described as "ignoring" the Treasury company's book losses and continuing to buy. This suggests that at least some institutional investors still prefer accumulating for the long term, rather than reacting to short-term volatility.
Since its launch over a month ago, this ETF group has recorded Net Inflows on all the days mentioned. As a result, Total Net Assets have surpassed the $1 billion mark and reached $1.25 billion at the time of recording in the original document.
The "mismatch" between the unrealized losses of a large holding entity and the inflow of funds into the ETF is often interpreted as a signal: some institutions still view XRP 's long-term prospects positively, expecting a potential reversal when market conditions improve.
Selling pressure from retail investors and whales is outweighing buying pressure.
XRP weakened primarily due to simultaneous selling pressure from both retail and whale investors, meaning demand from ETFs was insufficient to balance the market.
The original content indicates that Capital Flow Strength represents a stronger outflow of funds than inflows. Both Capital Flow and Capital Flow Strength have remained negative since the end of November, at -42 and -14 respectively at the time of recording.
When more Capital leaves the market than Capital in, downward pressure on prices typically increases because buyers have to absorb the larger supply. This also aligns with the view that demand from institutions is not yet strong enough to neutralize existing selling pressure.
The Accumulation/Distribution Money Flow (ADMF) indicator is also described as remaining negative, emphasizing that sellers are dominant. In such a structure, the price is vulnerable to further declines unless there is a catalyst for a reversal in money flow.
The $2 mark is a crucial condition for XRP to stabilize its trend.
For a clear reversal, XRP needs to break above $2 and turn that level into support; if selling pressure persists, the risk of a pullback to $1.50 remains.
The original text outlines a bearish scenario: if selling pressure continues, this altcoin could slide to the 1.50 region. This is a target level inferred from the current downward trend, not a definitive forecast.
On the recovery side, the key condition is that buying pressure, especially from institutions, must be strong enough to push the price back above $2 and establish $2 as a support zone. When a psychological level shifts from resistance to support, the price structure is usually more resilient to short-term selling.
Conclude
Evernorth recorded an unrealized loss of $225 million following the XRP price drop, while the XRP Spot ETF continued to attract net Capital , raising its total net assets to $1.25 billion. However, selling pressure from retail investors and whales is overwhelming, making the $2 level a crucial point to reclaim to mitigate the risk of further decline.
Frequently Asked Questions
Why did Evernorth incur such a large unrealized loss on XRP?
Because Evernorth purchased a large amount of XRP between October 22nd and December 24th, the price of XRP subsequently dropped from $2.60 to $1.80. This fluctuation turned an unrealized profit of $71 million into an unrealized loss of $225 million.
What does it mean that the XRP Spot ETF is still accumulating?
The continuous net inflow of Capital and total net assets reaching $1.25 billion indicate that there is still institutional demand that believes in XRP's long-term prospects, despite short-term price weakness and some large holders showing losses on their books.
What is the most important price level for XRP to reverse its trend?
The $2 mark is XEM the most important level in the original text. To reverse, XRP needs to break above $2 and hold this level as a support zone; if selling pressure persists, the risk of a pullback to $1.50 remains.
