XRP took center stage as Ripple-backed Evernorth announced plans to raise over $1 billion to build an XRP treasury reserve, which sent the token to a high of $2.5536 on Monday, October 20. This could mark a turning point for XRP’s institutional narrative.
Evernorth Holdings Inc. announced a public launch and a business combination agreement with Amarda Acquisition Corp II (Nasdaq: AACI), a publicly traded special purpose acquisition company (SPAC). Following the transaction, the company will continue as Evernorth (Nasdaq ticker: XRPN).
According to the official press release, investors include SBI, Ripple, Rippleworks, Pantera Capital, Kraken, and GSR. Ripple co-founder Chris Larsen and other prominent fintech names and investors will also participate.
Crucially, Evernorth will use the net proceeds to purchase XRP, aiming to build the largest institutional XRP treasury reserve.
Evernorth CEO Asheesh Birla commented on the SPAC’s strategy, stating:
“Evernorth is built to provide investors more than just exposure to XRP’s price. As we capitalize on existing TradFi yield generation strategies and deploy into DeFi yield opportunities, we also contribute to the growth and maturity of that ecosystem.”
Birla added:
“This approach is designed to generate returns for shareholders while supporting XRP’s utility and adoption. It’s a symbiotic model: our strategy is designed to align with the growth of the XRP ecosystem.”
The deal is expected to close in the first quarter of 2026. In addition to building the largest institutional XRP treasury reserve, Evernorth also plans to drive XRP’s real-world utility, focusing on payments, capital markets, and tokenized assets.
PR Newswire summed it up:
“Evernorth’s strategy is designed not only to accumulate XRP as a reserve asset but also to act as a long-term catalyst for the adoption and institutionalization of the XRP Ledger.”
Former Ripple Chief Technical Officer David Schwartz commented:
“XRP Community – I promised I’d have an update on my next venture soon right? Well here’s the start: I’ll be a strategic advisor to Evernorth, helmed by my friend @ashgoblue. Evernorth was founded as a regulated, scalable investment vehicle to tap into opportunities for XRP in DeFi and capital markets, extending the entire XRP ecosystem. I’m excited to get started!”
Market reaction to the announced plan for a $1 billion XRP treasury reserve asset underscored the significant influence of institutional demand on price trends. Analysts remain optimistic that strong demand for XRP-spot ETFs could send the token to new highs.
Furthermore, the announcement is likely to instill institutional confidence in XRP, potentially setting the stage for an explosive XRP-spot ETF launch.
However, the US government shutdown continues to leave XRP-spot ETF launches on ice, leaving the token well below its record high of $3.66. Grayscale, 21Shares, and Bitwise had final decision deadlines of October 18, 19, and 20. Delays are also expected for Canary Capital, CoinShares, and WisdomTree, which have final decision deadlines this week.
Notably, uncertainty about the timelines for a spot ETF launch had contributed to XRP’s pullback from an October 2 high of $3.1027.
Market intelligence platform Santiment commented on XRP’s price recovery above $2.5, stating:
“Just 10 days after XRP dropped below $1.90, and 3 days after retracing to $2.20, XRP has crossed above $2.5. Data shows clear signs of the crowd selling at a loss and conveying FUD. Prices typically move opposite to retail’s expectations.”
XRP rallied 4.47% on Monday, October 20, following the previous day’s 1.21% gain, closing at $2.4978. The token outperformed the broader crypto market, which gained 1.62%. Despite the breakout, XRP continued trading below the 50-day and 200-day Exponential Moving Averages (EMAs), reaffirming a bearish bias.
Key technical levels to watch include:
In the coming sessions, several key drivers could influence near-term price trends:
Bearish Scenario: Risks Below $2.4
These bearish scenarios could push XRP back toward $2.4. A break below $2.4 may expose the $2.0 psychological support level.
Bullish Scenario: Path to $3
These bullish scenarios could send the token above $2.7, putting $3.0 into play. A break above $3.0 could pave the way toward $3.66.
XRP’s near-term price trajectory hinges on the launch of spot ETFs and flow trends. Given the ongoing US government shutdown, traders should closely monitor Capitol Hill for progress toward reopening.
XRP could target the $3.0 handle if the US Senate passes a stopgap funding bill. The combination of Fed rate cuts, spot ETF approvals, rising institutional demand, and bipartisan support for the Market Structure Bill could send the token to new highs.
Capitol Hill may now hold the key to XRP’s next breakout. Tuesday’s Senate vote on a stopgap funding bill could dictate whether the token reclaims $3 or retreats toward $2. A Senate vote fell short of the needed 60 for an eleventh time on Monday, October 20, extending the shutdown to 20 days.
Traders should closely monitor Capitol Hill and US-China trade headlines.
With over 28 years of experience in the financial industry, Bob has worked with various global rating agencies and multinational banks. Currently he is covering currencies, commodities, alternative asset classes and global equities, focusing mostly on European and Asian markets.
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