Evernorth Faces $220 Million Loss on XRP as Analysts Warn of More Pain Ahead

Market Snapshot
The report from TheCoinRepublic reveals that Evernorth, a well-known crypto fund active in digital asset trading and staking, saw a significant markdown in its XRP portfolio after the token failed to sustain key technical support levels around $0.52.

The fund’s losses — reportedly exceeding $220 million — highlight the growing risks faced by institutional investors with large exposure to volatile altcoins.

XRP’s price, which surged earlier in 2025 amid optimism around Ripple’s institutional partnerships and cross-border liquidity solutions, has since corrected sharply, falling nearly 30% over the last two months.

Analyst Warnings: Deeper Correction Possible
Top analysts cited by TheCoinRepublic believe the correction may not be over yet.
Markus Heller, a senior market strategist, noted:

“The technical setup for XRP remains fragile. Unless the token reclaims the $0.55–$0.60 range, the next leg down could test $0.40 — or even $0.35 in an extended selloff.”

He added that XRP’s weak on-chain activity and declining transaction volume point to cooling retail and institutional demand, especially compared to Bitcoin (BTC) and Ethereum (ETH), which have maintained stronger network fundamentals.

Other experts argue that while XRP’s fundamentals — particularly its integration with RippleNet and institutional liquidity networks — remain intact, short-term investor sentiment has clearly shifted to risk-off.

Evernorth’s Exposure and Broader Implications
Evernorth’s loss underscores how even professional crypto funds are not immune to volatility in the altcoin sector. The firm had aggressively accumulated XRP throughout 2024–2025, positioning it as a long-term liquidity and payments asset aligned with Ripple’s enterprise strategy.

However, the recent downturn caught leveraged and long-positioned traders off guard, forcing several funds — including Evernorth — to reduce exposure and rebalance portfolios toward lower-risk assets like Bitcoin and stablecoins.

This move could signal a short-term liquidity drain from altcoin markets, amplifying downside volatility.

Ripple’s Position & Market Context
Ripple continues to expand its enterprise footprint, recently acquiring stakes in regulated financial firms and advancing partnerships with Asia-Pacific payment corridors.

But analysts caution that Ripple’s corporate momentum does not always translate into immediate XRP price performance.

“Investors often conflate Ripple’s business success with XRP token appreciation — the two are correlated but not identical,” said crypto market researcher Elena Fischer.

Macro uncertainty, including global liquidity tightening and reduced speculative inflows, is also adding pressure to the broader crypto market heading into 2026.

Future Outlook: A Reset Before Recovery?
Despite short-term pain, some analysts remain optimistic about XRP’s medium-term recovery prospects, particularly as global adoption of tokenized payments and regulated digital assets expands.

If XRP holds above its long-term support near $0.38–$0.40, technical traders believe a base-building phase could set the stage for a rebound in the second half of 2026 — especially if institutional demand for liquidity tokens resurges.

For now, however, Evernorth’s losses serve as a stark reminder that even infrastructure-grade assets like XRP remain vulnerable in volatile macro conditions.