Speculation in a risk-off environment can cut both ways.
At the moment, Ripple is the focal point of wild speculation. A post on X suggested that Evernorth, an XRP treasury company, may purchase $655 million worth of XRP next week. The social media post went viral, sparking market activity.
Bulls welcomed the news as a possible catalyst for an XRP rally in November, while skeptics argued that it was simply unsubstantiated rumor that could mislead the market.
As the below post shows, many users questioned the post, arguing that it was just a means to increase engagement. Either way, this rumor may affect XRP’s market performance.
With Evernorth already in the spotlight over its recent XRPN listing, any news tied to the firm could trigger fresh speculation around XRP.
Notably, the timing of this speculation could hardly be worse.
Technically, XRP is among the worst-performing assets this month. It is down 13%, erasing all gains made in September. The altcoin has slid to $1.25, its September low, testing this level as a critical support zone.
A break below it is likely to spark another wave of selling, especially as market demand continues to weaken.
Reinforcing this trend, spot XRP ETFs had their first negative week since July, reports SoSoValue. According to the data, spot XRP ETFs had a net outflow of $1.84 million last week, with only one day of inflows.
This marked the end of a 13-week consecutive weekly inflow streak, suggesting that institutional investors’ appetite for the asset may be cooling off.
So, given the recent weakness in the structural setup of Ripple’s [XRP] market structure and the amount of sell pressure on the on-chain data of major CEXs, could the new hype around Evernorth end up being a bull trap?
XRP bull rally hopes rise on Evernorth rumors
Nothing conveys the market’s reaction to the hype better than XRP’s long/short ratio.
According to data from CoinGlass, XRP’s long/short ratio has increased to 1.06, hitting its highest level in more than two weeks. This suggests traders are leaning bullish, betting on a possible bull run initiated by Evernorth’s alleged purchase of $655 million in XRP.
Thus, if the rumored purchase fails to materialize or insufficient buying pressure from institutions continues, it can trigger a bull trap at XRP’s $1.25 level, leaving late longs highly vulnerable.
Moreover, Evernorth’s own technical setup is not looking entirely bullish either.
According to the chart above, XRPN had a sharp post-launch rally, rising from $15 to $53. However, at press time, the token was trading 5% lower than its opening price, showing a very speculative market driven by the hype of the launch.
While it does not rule out Evernorth’s ability to accumulate XRP, it does pose questions about whether the hype around the firm would be able to drive buying pressure for XRP.
Taken together, these signals paint a mixed picture for XRP. While Evernorth rumors are fueling bullish bets, declining ETF net inflows, aggressive selling pressures, and the inability to hold $1.25 suggest the broader setup remains bearish.
Unless the hype translates into confirmed accumulation, XRP could fall into a bull trap, putting the next key support at $1.20 in focus.
Final Summary
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Evernorth’s rumored $655 million XRP purchase has boosted market hype, but weak ETF flows and heavy selling pressure raise bull trap risks.
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XRP is struggling to hold $1.25. If it breaks below this level, the price could fall toward $1.20.
