In a day of unusual market activity, XRPN shares tumbled 50 percent. The price action was stark: from an opening of $38.65, the stock fell to $19.20, wiping out $19.45 in value. Yet the underlying XRP token was hardly affected, with only a 0.7% decline as it went from $1.5077 to $1.4971.
XRPN Shares Plunge Dramatically, XRP Token Remains Resilient
Cheeky Crypto’s host would call this a case of decoupling between the two. The fact that Bitcoin also posted a small 0.3% loss on the day only serves to make the magnitude of the XRPN slide more of a mystery. There is clearly a disconnect with the rest of the crypto market, which has some wondering about the state of sentiment and what might be driving these disproportionate losses. To compound matters, Evernorth Holdings has postponed its merger to October 9, leaving the market with a good deal of uncertainty.
Merger Delay Adds to Market Uncertainty
With the XRPN share price in a steep decline for no apparent reason, Evernorth Holdings has announced a revised merger date of October 9, moving the schedule back from what was planned. The host of Cheeky Crypto suggests the panic selling is better explained by something other than the announcement itself.
On top of that, there is an air of uncertainty in the investor community over how many shares and units are actually involved; while Evernorth says it will be left with some 473 million XRP once the merger is done, the specifics have not been made clear.
Analyst Warnings and Investor Recommendations
An analyst with Cheeky Crypto has issued a word of warning: do not expect XRPN shares to be an accurate barometer for XRP’s true worth until the merger is complete. Some are even speculating that the shares might slide as low as $10.52, in line with the trust estimate of the company.
In light of such risks, the recommendation from the desk is to hold off on XRPN unless one is in a position to absorb any losses. As for trading XRP, it would be prudent to spread holdings among a number of well-regarded exchanges rather than putting all your eggs in one basket on a single platform.
Every call by Cheeky Crypto and how it played out — in the BuyCrypt bloggers tracker.
Source — Cheeky Crypto: https://www.youtube.com/watch?v=x5V5FpQWC4c
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