XRP price is closing in on a key technical level as Evernorth clears another hurdle toward its Nasdaq debut, putting 473 million XRP and a potential move toward $1.62 in focus.
XRP price is yet again knocking on the $1.53 level, with Evernorth nearing its planned debut as a public XRP treasury company. XRP was trading near $1.51 on Oct. 6, keeping the token within range of the resistance level that analyst Ali Charts is keeping a close eye on.
Ali Charts stated a four-hour close above $1.53 could clear the way toward $1.62. For XRP, this would be a major move beyond the range XRP price is struggling to escape. This comes as Evernorth moves through the final stages of its merger with Armada Acquisition Corp. II.
Shareholders approved the deal on Sept. 30, taking out another one of the last major hurdles before the transaction is expected to close on Oct. 7.
Nasdaq trading of the combined entity as XRPN is set to commence on Oct. 8, pending the final conditions to the transaction. What makes this development particularly interesting for XRP is the potential for a new avenue of entry for traditional investors.
Evernorth is expected to hold roughly 473 million XRP upon the closing of the transaction, which would make it the largest publicly traded pure-play XRP treasury company, according to the firms.
Investors have committed both cash and XRP to the transaction. The companies expect about $300 million in gross cash proceeds before expenses. That includes roughly $225 million from private placements, $30 million from new convertible notes, and $48 million from trust proceeds. Total commitments for the deal and related private placements have now topped $1 billion.
Based on the circulating supply figure published by CoinMarketCap, Evernorth's expected XRP holdings would make up roughly 0.75% of the supply. While that would be a meaningful position for an individual corporate treasury, it still falls short of being a supply-defining position. The shift in the setup, however, goes beyond just an increase in balance sheet holdings.
Evernorth is not a passive holder of XRP. The company has a strategy that includes yield strategies, participation in the XRP ecosystem, and capital-markets activity, with the goal of increasing XRP per share over time. This fundamentally differentiates it from a large corporate wallet.
The XRP price is now hovering around the specific level noted by Ali Charts as a potential short-term trigger. In his Oct. 4 commentary, the analyst noted that XRP had been consolidating inside a triangle that was getting tighter as it neared the apex.
He added that a close of the four-hour candle above $1.53 could confirm a bullish breakout and open the door to $1.62.
The range between these two levels is very tight, and in fact, TradingView data shows that XRP traded at approximately $1.51 at the time of writing, with a 24-hour high of $1.53.
The market cap for the token was approximately $95.6 billion, while daily trading volume was about $2.14 billion at the time of writing, making it the fifth-largest cryptocurrency by market value on the CM site. So, the $1.53 level is not some far-off theoretical value. XRP has traded at that price in recent days. The next question is whether it can hold at that level and move higher.
The Evernorth news comes after another major change in the whales' positioning. As reported by Block Insider in September, whales have accumulated more than $2 billion worth of XRP ahead of the token’s move toward $1.50.
Looking at the on-chain cost basis figures cited in that report, there appears to be relatively light resistance at $1.6, where approximately 2.5 billion XRP have changed hands in the past. That makes the proximity of Ali Charts' $1.53 breakout level and the earlier $1.60 on-chain resistance zone very interesting.
In other words, XRP does not have much room to move above $1.53 before encountering another historically significant supply zone. XRP crypto price therefore has a couple of potentially important hurdles to clear.
The first is technical: a close above $1.53 on a four-hour closing basis. The second is market-based: generate enough demand to push through the $1.60 area noted by on-chain data.
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