XRP News Today: XRP Tumbles Below $2 as Evernorth Suffers $220M Loss

Ripple-backed Evernorth Holdings is now facing a $220 million unrealized loss on its XRP holdings, as the cryptocurrency struggles amid broader market volatility. The firm, which began its accumulation of XRP in October 2024, purchased 389 million tokens for approximately $947 million. However, with the price of XRP currently trading at around $1.86, the value of that position has dropped to currently trading at $1.86.

The decline in XRP's value has been driven by sustained selling pressure from both retail and institutional investors. Despite the recent approval and strong inflows into XRP-based ETFs, the broader market remains cautious, with traders and investors opting to reduce exposure amid macroeconomic uncertainties. The token, which once traded above $2.60, has spent over a week trading below the $2 level.

Institutional investors have continued to show some confidence in XRP through ETF structures, which now hold over $1.25 billion in XRP-related assets. However, this has not been enough to counter the heavy selling from large holders and speculative traders, leading to a fragile market structure for the token.

How XRP Price Decline Affects Evernorth and Market Sentiment

The price drop has turned a previous unrealized profit for Evernorth into a significant loss. In October, the firm held XRP at a level that would have generated a $71 million gain. However, the current price environment has reversed that position to a $225 million loss, according to on-chain analytics. Analysts have pointed to the risk of capitulation, where weaker holders may decide to sell their positions in response to the growing deficit.

This situation highlights the volatility of altcoins and the risks associated with concentrated exposure. While Evernorth was positioned as a major player in the XRP ecosystem, the market downturn has exposed the fragility of such strategies. As a result, market participants are watching closely to see if Evernorth will maintain its commitment or adjust their holdings in response to the ongoing sell-off.

Risks to the XRP Outlook and Institutional Confidence

XRP's prolonged weakness has raised concerns about its underlying fundamentals. The token's price performance has been more speculative than driven by actual adoption of Ripple's payment network. Analysts and investors are now scrutinizing whether XRP has real utility beyond its role as a speculative asset. Despite the recent regulatory clarity and ETF inflows, there is no significant increase in RippleNet transaction volumes or business adoption to support a sustained recovery according to financial analysis.

The broader crypto market has also been affected by macroeconomic headwinds, including rising interest rates and uncertainty around the U.S. Federal Reserve's policy trajectory. These factors have led to risk aversion, with investors shifting capital out of digital assets. Additionally, the market-wide correction following the U.S.-China tariff announcement has had a lasting impact on XRP, dragging the token down alongside Bitcoin and Ethereum.

What This Means for Investors and the ETF Market

The situation presents a mixed picture for investors. While XRP ETFs continue to attract inflows, indicating institutional confidence in the long-term potential of the token, the on-chain selling pressure shows the market is still in a bearish phase. Investors must weigh the ongoing ETF support against the risks posed by continued retail and whale outflows. If the price of XRP cannot reclaim and hold the $2 level, further declines toward $1.50 are possible.

For now, the market is closely watching whether institutional buying can overcome the prevailing bearish momentum. A sustained recovery may depend on renewed adoption of XRP in real-world applications, rather than regulatory or ETF-driven speculation. Until then, the path for XRP remains uncertain, with both opportunities and risks for holders.