Key Takeaways
- XRP sentiment has fallen into “extreme fear” after a 19% drop from its January highs.
- Evernorth has announced a $1 billion XRP treasury plan and a collaboration with t54 to deploy AI-powered treasury agents on XRPL.
- Technically, XRP price remains in a downtrend.
XRP sentiment has fallen into what analysts describe as “extreme fear” territory after a sharp pullback from recent highs, even as institutional developments point to longer-term structural demand for the token.
The token has declined roughly 19% since its Jan. 5 peak, weighing on retail confidence, according to social sentiment data from crypto analytics firm Santiment.
At the same time, digital asset treasury firm Evernorth said it is pursuing a strategic collaboration to deploy artificial intelligence–driven agents as it builds a $1 billion institutional XRP treasury.
The recent moves have raised questions about the impact on XRP’s price.
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Evernorth Announces Strategic Collaboration With t54
Evernorth said it intends to collaborate with agentic finance infrastructure provider t54, aiming to become the world’s largest institutional XRP digital asset treasury.
The company is raising more than $1 billion to accumulate XRP and actively grow its holdings through institutional lending, liquidity provisioning and decentralized finance (DeFi) strategies on the XRP Ledger (XRPL), rather than operating as a passive holding vehicle.
“As Evernorth looks to embrace AI-powered operations, the right infrastructure becomes essential,” it wrote in an announcement.
“This is where t54 comes in,” it wrote.
“Evernorth intends to integrate t54’s agentic finance infrastructure and trust layer to power their autonomous treasury operations on XRPL.”
The firm said the collaboration would bring verification, risk assessment, and compliance to AI-powered treasury management.
XRP Sentiment Hits Extreme Fear
Despite the institutional announcement, short-term sentiment around XRP has deteriorated sharply.
According to Santiment , XRP has entered “extreme fear” territory based on social media and retail commentary, following a roughly 19% decline from its January highs.
“Small retail traders have become pessimistic toward the number five cryptocurrency by market capitalization,” Santiment said in a post on X.
Historically, the firm noted, such elevated bearish sentiment has often coincided with market bottoms rather than sustained declines.
Santiment added that crypto prices frequently move against retail expectations, with extreme pessimism sometimes preceding price recoveries rather than further sell-offs.
What It Could Mean for XRP Price and Supply
Traders have speculated that Evernorth’s plan to deploy a $1 billion actively managed XRP treasury could influence supply dynamics over time.
Unlike passive products, active treasury operations may reduce liquid supply available on exchanges.
However, analysts caution that near-term price action is still largely driven by broader market sentiment and technical factors rather than long-term treasury strategies.
XRP Technical Price Outlook
On Tuesday, Victor Olanrewaju, a CCN analyst, said XRP remains in a broader corrective phase on the weekly chart after failing near the $3 level earlier in the cycle.
“Price has been trading within a clear descending channel since the mid-2025 peak, indicating that sellers still control the higher-timeframe trend,” Olanrewaju said.
Olanrewaju noted that the Money Flow Index (MFI) is rising from deeply oversold levels while price continues to drift lower, forming a bullish divergence on the weekly timeframe.
“That suggests selling pressure is losing strength and longer-term buyers may be stepping in, even though price has not yet responded,” he said.
A break above $2.42 could open the path toward $3, while a breakdown below support would invalidate that scenario and expose deeper downside, he wrote.
At the time of reporting, XRP was trading at $1.95, down almost 8% over the past week.
