XRP is testing $1.25 as an unconfirmed rumor about a $655 million Evernorth purchase fuels bullish bets. Weak ETF flows and a 13% monthly drop leave the token exposed if the buying never materializes.
A viral post on X claims Evernorth, an XRP treasury company, may buy $655 million worth of XRP next week. Nothing confirms the claim, and many users questioned it, arguing it was just a way to boost engagement.
Bulls treat the rumor as a possible catalyst for an XRP rally in November. Skeptics call it unsubstantiated and say it could mislead the market.
XRP slides to its September low
The timing is poor for XRP. The token is down 13% this month, erasing all gains made in September, and it has slid to $1.25, its September low.
Traders are testing that level as a critical support zone. A break below it is likely to spark another wave of selling, according to AMBCrypto.
Institutional demand also shows signs of cooling. Spot XRP ETFs recorded a net outflow of $1.84 million last week, their first negative week since July, SoSoValue reports. The outflow ended a 13-week streak of weekly inflows.
Positioning leans bullish despite bearish signals
The rumor is already moving positioning. XRP's long/short ratio rose to 1.06, its highest in more than two weeks, according to CoinGlass.
However, on-chain metrics are flashing bearish signals, the market remains risk-off and institutional buying is showing signs of waning. If the purchase fails to materialize, AMBCrypto says a bull trap at $1.25 could leave late longs highly vulnerable.
Evernorth's own token, XRPN, rose from $15 to $53 after launch but was trading 5% below its opening price at press time. That does not rule out Evernorth accumulating XRP, yet it raises questions about whether the hype can drive buying.
Unless the rumor turns into confirmed accumulation, XRP could fall into a bull trap, putting $1.20 in focus as the next key support.
Source: AMBCrypto
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