XRP’s Prolonged Dip Inflicts $225M Unrealized Loss on Evernorth Amid ETF Gains

• XRP price has remained under $2 for over a week, intensifying bearish sentiment.

• Institutional investors, including spot ETFs, persist in buying despite price declines.

• Evernorth’s holdings shifted from $71 million profit to $225 million loss, per analyst data from CryptoQuant.

Discover the latest on XRP price drop: Unrealized losses mount for treasury firms while ETFs accumulate. Explore causes and recovery outlook for informed crypto investing. Stay updated on XRP trends today.

What is causing the XRP price drop below $2?

XRP price drop stems from sustained selling pressure by retail and whale investors, overpowering institutional buying. Since slipping under $2 over a week ago, XRP has hovered around $1.80, reflecting broader market weakness. This decline has erased prior gains, turning profits into substantial losses for long-term holders.

How have XRP treasury firms been impacted by the price decline?

Evernorth, a major XRP treasury firm, acquired 388.7 million tokens between October 22 and December 24, 2024, at an average value of $947.1 million, positioning it as the largest publicly traded entity dedicated to XRP accumulation. As XRP fell from $2.60 to $1.80 amid the crypto downturn, these holdings incurred a sharp valuation hit.

Source: CryptoQuant

Analyst Maartunn reports that what was once a $71 million unrealized profit has reversed into a $225 million unrealized loss, highlighting the volatility in XRP’s market. Such figures underscore the risks for treasury strategies reliant on altcoin exposure. Long-term holders like Evernorth typically weather these storms, betting on future upturns, but the scale of losses tests resolve and could prompt sales from less committed participants. Market data from CryptoQuant shows this shift occurred rapidly, with XRP’s price sensitivity amplifying the impact on large positions. Experts note that while treasury firms aim for diversification, concentrated bets on assets like XRP expose them to sharp corrections, as seen in recent trading sessions where daily lows pressured portfolios further.

Frequently Asked Questions

What are the unrealized losses for major XRP holders like Evernorth?

Evernorth’s 388.7 million XRP holdings, purchased for $947.1 million, now reflect a $225 million unrealized loss due to the price drop from $2.60 to $1.80. This reversal from an earlier $71 million profit illustrates the asset’s volatility, based on on-chain data from CryptoQuant, urging caution for similar investors.

Are XRP spot ETFs still attracting inflows despite the price weakness?

Yes, XRP spot ETFs have seen consistent net inflows since their launch over a month ago, pushing total net assets beyond $1.25 billion. This accumulation persists even as prices decline, indicating robust institutional interest and a belief in XRP’s long-term potential, as tracked by Sosovalue metrics.

Key Takeaways

• XRP Price Drop Impact: The token’s fall below $2 has led to over $225 million in unrealized losses for Evernorth, shifting from prior profits and signaling market fragility.
• Institutional Accumulation: Spot ETFs defy the downturn with daily inflows, growing assets to $1.25 billion and highlighting confidence in XRP’s recovery.
• Selling Pressure Analysis: Negative capital flows at -42 and -14 underscore whale and retail outflows, potentially driving prices to $1.50 without reversal above $2.

Source: Sosovalue

Why is XRP showing persistent weakness in capital flows?

Despite ETF demand, XRP faces heavy outflows from smaller investors and whales, resulting in negative capital flow strength indicators. TradingView data reveals capital flow at -42 and strength at -14 since late November, with the Accumulation/Distribution Money Flow also in the red.

Source: TradingView

This dominance by sellers has kept XRP’s price structure vulnerable, as inflows fail to counter the exodus. The bearish momentum, evident in these metrics, points to intensified pressure unless buyers step up. Analyst insights from TradingView emphasize that sustained negatives in these indicators often precede deeper corrections, advising watchers to monitor for shifts in volume that could signal capitulation or rebound.

Conclusion

The XRP price drop has imposed hefty unrealized losses on treasury firms like Evernorth, reaching $225 million, while spot ETFs demonstrate unwavering accumulation to $1.25 billion in assets. Secondary factors, such as negative capital flows and whale selling, continue to fuel weakness, but institutional demand suggests potential for reversal if XRP reclaims $2 as support. As market conditions evolve, investors should track ETF trends and flow data closely for signs of stabilization, positioning for long-term opportunities in this volatile asset.