XRP faces a fall towards $2: Evernorth's $1 billion XRP treasury plan struggles to reverse the trend, need to be cautious of US inflation data.

Due to the “Black Friday” on October 10 causing massive liquidations, market sentiment has been dampened, and XRP has fallen nearly 15% in the past 30 days. Despite the negative sentiment, a company called Evernorth announced the construction of a massive treasury worth $1 billion focused on XRP, marking the largest corporate action to date for this Token and significantly enhancing its credibility. However, the daily chart has issued a major sell signal, with prices breaking below the key trend line support at $2.5. If the bearish sentiment continues, XRP could fall to $2 in the short term.

Huge Corporate Investment: $1 Billion Treasury Supports XRP Ecosystem

In the midst of low market sentiment, a heavyweight corporate investment in XRP has injected strong confidence and credibility into the project.

· The largest corporate action to date: Two days ago, Evernorth announced that it is constructing a large treasury worth $1 billion, focused on XRP. This is the largest corporate action taken so far regarding the XRP Token.

· Credibility endorsement: Evernorth's initiative has received recognition and support from Japanese financial giant SBI Holdings, as well as many well-known institutions in the cryptocurrency space (such as Pantera Capital and mainstream CEXs).

· Strategic Goal: Asheesh Birla, the head of Evernorth, commented that the plan aims to leverage existing traditional finance (TradFi) yield generation strategies and deploy them into DeFi yield opportunities, thereby creating returns for shareholders while supporting the utility and adoption of XRP. This is a symbiotic model designed to align with the growth of the XRP ecosystem.

Ecosystem Expansion: Stablecoin RLUSD Market Cap Approaches 900 Million USD

Since winning the lawsuit against the U.S. Securities and Exchange Commission (SEC), the Ripple ecosystem has been steadily growing, particularly making significant progress in the stablecoin space.

· The push of legal victories: Ripple won a long-term legal battle with the SEC last year, paving the way for new decentralized applications to launch on the XRP Ledger.

· The Importance of Stablecoin RLUSD: The launch of Ripple USD (RLUSD) as the native stablecoin of the project is considered a critical turning point for the ecosystem. It allows enterprise users to send USD payments via the XRP Ledger at extremely low transaction costs.

· Strengthening the cross-border payment vision: RLUSD can be used to further enhance Ripple's value proposition and its vision to become the global preferred cross-border payment solution.

· Market Cap Growth: The market cap of this stable asset has steadily increased from a mere $50 million in December 2024 to $874 million at the time of writing.

· Industry Position: According to data from DeFi Llama, RLUSD is already the 12th largest stablecoin, just $50 million away from rising to 11th place.

Technical Pressure: Breaks Key Trend Line, XRP May Test $2

Despite positive corporate news and ecological growth, the technical aspects of XRP have issued a clear bearish signal.

· Main sell signal: The daily chart shows that a major sell signal has been issued after XRP fell below the key trend line support.

· Demand zone turns into supply zone: This bearish breakout itself may not necessarily be a high-probability setup, but a successful retest confirms that market participants are no longer willing to buy XRP at a specific level. This means that the former demand zone has transformed into a supply zone.

· Key level at $2.5: The chart shows that $2.5 is a key level. Previously, investors would buy XRP when the price fell to this level, but now sellers have surpassed buyers. Therefore, this favors a bearish outlook as sellers seem to have complete control over the price movement.

· Short-term target of $2: This trend may lead XRP to fall to $2 in the short term.

· Early positive signal of RSI: Nevertheless, the Relative Strength Index (RSI) has climbed above the 14-day moving average, which could be an early sign that negative momentum is easing.

Conclusion

XRP is currently in a complex phase with both fundamental bullish and technical pressure coexisting. The backing of Evernorth's billion-dollar treasury and the rapid expansion of RLUSD stablecoin provide a solid foundation for XRP's long-term value and enterprise adoption. However, after the impact on October 10, the price has fallen below the critical support of 2.5 dollars, with bearish signals dominating in the short term. The upcoming U.S. inflation report will be a key external catalyst; if inflation unexpectedly rises, it may intensify negative sentiment in the market, making it difficult for XRP to hold above 2.5 dollars, thereby facing the risk of falling towards 2 dollars.

Disclaimer: This article is for news information only and does not constitute any investment advice. The encryption market is highly volatile, and investors should make cautious decisions.