XRP (XRP) has gone down by more than 8% in the past 24 hours, ahead of the listing of the token’s largest digital asset treasury (DAT) on the Nasdaq exchange.
Evernorth, a company holding 473 million in XRP valued at roughly $670 million at the time of writing, will soon become an option for investors to get exposure to this crypto asset.
Its public listing will be made possible through a merger with Armada Acquisition Corp. The shares will trade under the ticker symbol XRPN and will start trading today.
The company plans to move beyond a simple buy-and-hold model to a more complex set of strategies that aim to monetize its massive stash of XRP.
Its ambitions may include supplying the tokens for lending purposes and strengthening liquidity pools to earn yield on the investment.
Validators Continue to Vote on the Launch of a Lending Protocol for the XRP Ledger
These plans are in line with the proposals that are currently being voted on the XRP Ledger to launch a lending protocol that allows users to pledge XRP as collateral and get loans in Ripple USD (RLUSD).
According to on-chain data from XRP Scan, the two proposals (XLS-66 and XLS-65) have already been voted on by over 50% of all validators and require 80% of “yes” votes to move forward.
The launch of a lending protocol would give XRP another real-world use case and will give big holders like Evernorth a chance to earn income on their assets.
Moreover, with $300 million in cash, Evernorth may continue to buy XRP at these prices with the expectation that this bull market will continue in the next few weeks. This could provide a strong floor for the token at a point when the price action shows a strong bounce off the $1.32 area.
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See all Ripple forecastsXRP Needs to Stay Above $1.32 to Prevent a Much Deeper Correction to $1
Turning to the daily chart, that $1.32 area remains the key level to watch this week. The market will keep an eye on the inflation report that will come out on Wednesday, and that could unlock the necessary liquidity for the next big move.
Analysts expect an uptick in the metric. Hence, if prices rose at a slower pace than expected, it is highly likely that the market will bounce back, as that could further delay the Federal Reserve’s next interest rate hike.
The Relative Strength Index (RSI) in this high time frame has leaned toward the bearish end, dropping below the signal line and currently approaching 40. The price action is currently sitting on top of the 200-day exponential moving average (EMA), which makes the next moves critical to assess if this latest rally still has the strength to keep going.
This week seems to be critical for cryptocurrencies as the market needs to show evidence that its bearish cycle is actually over. We expect some strong bullish price movements ahead. Otherwise, there might be reasons to think that this was just another bear market rally.
A break below $1.32 would provide the evidence we need to confirm that XRP could be heading toward $1 in the next few weeks.
In contrast, if we get another strong bounce off the 200-day EMA or that support level, that would be an ideal opportunity for late buyers to get in the rally at a more attractive price point.
