XRP News Today: XRP's Slide Presses on Ripple-Backed Treasury, Triggers $220M Paper Loss

Ripple-backed Evernorth Holdings, a major XRP treasury entity, is currently facing an unrealized loss of over $220 million as XRP continues to trade below $2. The firm, which holds around 389 million XRP tokens, purchased these assets for approximately $947 million in late 2024. With the token's current price at $1.86, the value of its holdings has dropped to $724 million, translating into a significant paper loss.

The decline in XRP's price has persisted for over a week, intensifying bearish sentiment and raising concerns about further price deterioration. This prolonged dip has been attributed to sustained selling pressure from both retail and institutional investors. While some large investors have remained bullish, the market has struggled to recover from its recent downturn.

Institutional demand for XRP, however, appears resilient. Despite the price weakness, XRP spot ETFs have continued to attract inflows, with total net assets now exceeding $1.25 billion. This accumulation highlights the ongoing confidence of institutional investors in the asset's long-term potential.

Evernorth's position reflects a broader trend among treasury firms that have taken aggressive positions in XRP. The company's holdings, initially expected to yield a $71 million profit, have turned into a $225 million loss as the token has dropped from $2.60 to $1.80. Analysts from on-chain data platforms note that this dramatic shift underscores the volatility inherent in altcoin markets and the risks associated with concentrated treasury strategies.

The unrealized losses for entities like Evernorth are particularly pronounced due to the large volume of XRP they hold. This has raised questions about the sustainability of such treasury models, especially when market conditions turn sharply bearish. The rapid valuation hit has also increased the likelihood of sell-offs from less committed holders, potentially exacerbating downward pressure.

Despite institutional interest, XRP has seen negative capital flow indicators since late November, with metrics like Capital Flow and Capital Flow Strength remaining at -42 and -14, respectively. These indicators suggest a dominance of sellers, with heavy outflows from both small-scale and whale investors contributing to the token's weak price action.

The Accumulation/Distribution Money Flow (ADMF) has also turned negative, reinforcing the bearish narrative. Analysts warn that unless buying pressure increases, XRP could see further declines, potentially pushing the price toward $1.50. This scenario highlights the fragile balance between institutional accumulation and broad selling pressure currently influencing the market.

For retail and institutional investors alike, the current situation illustrates the challenges of navigating volatile altcoin markets. While XRP ETFs offer a way to access the asset through a familiar and regulated structure, the underlying price weakness remains a concern. Investors must weigh the potential for recovery against the ongoing risks of further declines, especially with the broader crypto market still facing uncertainty.

Analysts suggest that a key level to watch is the $2 mark, which has historically served as strong support for XRP. A successful retest and breakout above this level could signal the beginning of a reversal. Until then, the market remains in a fragile state, with daily price movements likely to be driven by both sentiment shifts and macroeconomic developments.