Evernorth Raises $80M to Buy More XRP but Analysts Warn $1 Is in Danger
Evernorth filed to raise up to $80.7 million to buy more XRP , even as analysts warn a break below key support could send the token toward $0.98.Why Evernorth Is Raising Funds to Buy More XRPEvernorth filed to raise up to $80.7 million through a committed equity facility with Cantor Fitzgerald, with proceeds earmarked for general corporate purposes including additional XRP purchases, according to a press release.The deal lets Evernorth sell up to 5.22 million new shares to Cantor affiliate CF Principal Investments over roughly 14 months.The $80.7 million figure represents a ceiling rather than committed capital, with shares selling at a discount to market price.The filing estimates about $78.3 million in net proceeds after fees at its reference price, subject to SEC approval and trading conditions.Evernorth already holds 473 million XRP, and the new equity line sits alongside a separate potential funding source of up to $132 million through warrant exercises.The structure mirrors the equity-for-crypto approach Michael Saylor popularized with Strategy’s Bitcoin accumulation strategy, now applied to XRP by a growing list of public companies building concentrated single-asset treasuries.Selling new shares to fund token purchases dilutes existing shareholders, and actual proceeds will fluctuate with Evernorth’s share price, meaning the full $80.7 million may never get drawn.Why Martinez Sees More Downside Ahead that wallets holding between 10 million and 100 million XRP fell from 351 to 339 over the past few weeks, suggesting some large holders may be reducing exposure.One analyst pointed to XRP held on exchanges rising from 11.003 billion to roughly 11.05 billion tokens, adding about 50 million XRP to trading platforms."If large holders continue moving tokens to exchanges, more supply could become available to sell," Martinez said.Martinez identified $1.26 as the lower boundary of a channel XRP has traded within since August, calling it the key level to watch.A break below that support could first send XRP toward $1.11, he said, with the broader channel pattern pointing toward $0.98, roughly 22% below $1.26.Technical indicators added to the cautious picture. The MACD flashed a "Sell" signal and the Awesome Oscillator turned bearish, according to TradingView, while RSI remained neutral.Meanwhile, widely-followed trader ChartNerd posted on X that XRP’s daily 20/50 EMA death cross, last seen before a 30% decline, reappeared on Oct. 19 and has since rejected those EMAs, a setup he said could again push XRP toward or below $1.00.Despite the bearish signals, derivatives traders leaned bullish. Nearly 78% of top trader accounts on Binance holding open XRP positions were positioned long, according to Coinglass data.Preview Image: Shutterstock