- Ripple gears up for a $1 billion SPAC deal to assemble a new XRP treasury.
- XRP price correction gives a breakdown below the $2.35 support, signalling prolonged downfall ahead.
- The 20-day EMA slope could offer dynamic resistance to the coin price.
XRP, the native cryptocurrency of the XRP Ledger, showed a high volatility neutral outlook on Friday, October 18th. During the Asian market hours, the coin price witnessed a sharp sell-off and plunged to a low of $2.192 before reverting to $2.3. Amid the mounting selling pressure in the broader market, the renewed demand pressure likely followed Ripple’s attempt to strengthen its grip over XRP reserves with $1 billion in fundraising through a SPAC.
Ripple Labs Plans $1 Billion SPAC Raise to Build XRP-Focused Digital Treasury
Ripple Labs is reportedly arranging a major financial maneuver to have more control over XRP reserves. As per Bloomberg, the blockchain firm is getting ready to raise at least $1 billion to establish a new digital asset treasury in the hopes of creating a large pool of XRP holdings.
The fundraising will take place in the form of a special purpose acquisition company (SPAC), a structure used frequently for reverse mergers and capital market entries. Under the plan, the SPAC would make an outside investment, while Ripple would add a portion of the XRP it already has to comprise the base of the new treasury. This hybrid approach is a blend of money raised from investors and Ripple’s contribution in the form of tokens, which adds both liquidity and digital support to this initiative.
Discussions are still ongoing on the deal, and insiders report that the structure may still change before an official launch. The fundraising scale places it as one of the largest digital asset treasury formations so far, especially centered on a single token. Ripple’s move is likely a part of a broader effort to nudge XRP more securely into institutional financial infrastructure.
The move comes at a time when Ripple recently acquired GTreasury, a corporate cash management software firm, for $1 billion to build Ripple’s footprint in the enterprise treasury ecosystem. Pairing that deal with the proposed capital raise is a signal favoring merging blockchain liquidity with the traditional tools of corporate finance.
While the market is still volatile, Ripple’s initiative points to an attempt to institutionalize the place of XRP in treasury operations—not through promotion, but through tangible financial architecture around it.
XRP Price Correction Gets Another Support Breakdown
In a four-day downfall, the XRP price plunged from $2.64 to $2.26, registering a 13% loss. This reversal showcased a fresh lower high formation in the daily chart, indicating an intact sell-the-bounce sentiment in the market.
Interestingly, the accelerated selling pressure followed a major breakdown from the traditional bearish pattern called a descending triangle. Since 18th July 2025, the XRP price has witnessed a long distribution phase, resonating within a declining resistance trendline and firm horizontal support at $2.66.
With today’s drop of over 1.5%, the XRP price offers another support breakdown below the $2.325 floor. If the breakdown is sustained, the XRP price could extend its downfall another 12% and test the psychological support of $2.
A potential bearish crossover between the 20- and 200-day exponential moving averages reinforces the bearish narrative for a prolonged correction.
On the contrary, if the buyers manage to the $2.3, the coin price could rebuild bullish to rechallenge $2.62.
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