XRP’s $1.54 breakout test meets Ripple’s 1B token unlock – Can demand absorb supply?

$XRP price action is tightening within a narrowing structure as buyers defend rising support while sellers continue capping rebounds. After reaching $1.665, Ripple [$XRP] fell and continued to form lower highs towards $1.55.

The rising support defended each of the declines from about $1.45-$1.47. This keeps the short-term recovery shape alive and well. $XRP currently trades at approximately $1.4916, close to the bottom border of the triangle.

This makes the next breakout important because it could determine whether the recovery extends or reverses.

Additionally, RSI at 46.02 shows $XRP is experiencing neutral to slightly downward momentum against strong buying power. Therefore, if the price breaks through $1.54, it will likely be enough to create room for the price to possibly recover back to $1.70 or higher.

A breakthrough below rising support will indicate a weakening setup. Until then, $XRP remains caught between tightening resistance and persistent support.

Evernorth tests $XRP’s institutional demand

Evernorth’s introduction of a new demand source for $XRP’s tightening range. Evernorth plans to list $XRP on the Nasdaq exchange. This will put approximately 566 million $XRP into a treasury with over $1.1 billion of committed capital backing the treasury.

This is important because institutional capital can provide longer-term support for the demand of $XRP to accumulate and potentially counteract short-term trading demand.

Additionally, $XRP has unlocked an additional one billion $XRP in four batches of 400, 300, 300, and 100 million $XRP.

Therefore, the result of these two factors is dependent upon whether most of the newly unlocked $XRP makes its way onto exchanges. If so, what percentage of the newly unlocked $XRP is absorbed by institutional demand?

Therefore, if Evernorth deploys capital toward $XRP while supply remains off exchanges, the demand could support price stability.

Can $XRP break $1.54?

The price of $XRP continues to be confined within an area that is a contracting structure, with buyer support increasing but seller resistance still present. The price of $XRP was able to rise up to $1.665, after which it formed lower highs toward $1.55.

This indicates there is supply present above current levels. The recent 1 billion $XRP release by Ripple brings up one additional factor that affects the overall supply of $XRP.

A significant portion of each month’s release may return to escrow, thereby limiting the amount of the released coins that are made available for trade.

Therefore, the post-release flow of funds into exchanges is more important than the release itself. Should exchange balances remain under control, then buyers should be able to absorb the current supply of $XRP with little or no disruption.

If $XRP breaks decisively through the $1.54 resistance level, then this will shift focus to the next resistance level at $1.70. Conversely, if multiple attempts fail to break through the $1.54 level, it is likely to create a stalemate with respect to continuing upward momentum.

Final Summary

• $XRP price tests $1.54, with $1.70 ahead if buyers break resistance.
• $XRP faces Evernorth demand against fresh Ripple supply.