Ripple Price Could Plummet After Chris Larsen Throws Support Behind Kamala Harris: What’s Next for Ripple?
On September 6, the Ripple price dropped below a critical support level due to a global stock market downturn triggered by an unfavourable PMI report. The Bitcoin price also broke a key support level, leading to a market-wide drop. Additionally, Ripple faced concerning news as the Chairman of Ripple, Chris Larsen, publicly endorsed Kamala Harris for president in the upcoming November elections. This move raised questions about the potential impact on XRP’s price, especially in the midst of various worrying economic factors.
Larsen Behind Kamala Harris
Larsen’s endorsement of Harris, in collaboration with 88 other business leaders, has sparked confusion within the XRP community as per CNBC. This is because the Biden-Harris administration, particularly through the U.S. Securities and Exchange Commission (SEC), has demonstrated a hostile stance toward cryptocurrencies.
This endorsement comes at a time when the U.S. government is intensifying its crackdown on cryptocurrencies, amplifying the overall negative sentiment toward the crypto industry amid a bleak global economic outlook.
Despite Ripple’s recent legal victory against the SEC, which reduced their penalty from $2 billion to $125 million, the support for a prominent political figure publicly critical of cryptocurrencies could lead to polarized opinions, attract critics, and potentially deter investors.
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Impending Recession Could Instigate Sell-off
The possibility of an impending recession could trigger a sell-off in the cryptocurrency market. The recent PMI report indicating weakening manufacturing and a softening labor market, coupled with an un-inversion of the U.S. Yield Curve after two years, could signal an imminent recession. In such a scenario, the volatility of cryptocurrencies, including Ripple, could lead to significant price swings, potentially driving investors away and impacting liquidity.
Ripple’s Price Analysis
A detailed analysis of Ripple’s price suggests a bearish trend, with a clear downward movement over the past month. The price is currently below the critical support level of $0.54, indicating a potential continuation of the downward trend.
The next significant support zone for the Ripple price is around $0.485, marked by previous swing lows in mid-August. A break below this level could lead to further downside towards $0.45. The most recent candle indicates a prevailing bearish sentiment, with a small body and long wicks on the top sides, suggesting a likelihood of forming lower lows in the coming days.
On the other hand, Ripple may encounter resistance around the previous support at $0.540. However, a strong bullish reaction is essential to reclaim this level. It would be a safer strategy to wait for a confirmed bounce from the $0.485 support area before considering a long position. Reclaiming $0.540 could signal a potential shift in momentum. The XRP price has declined by 1.6% in the last 24 hours, currently trading at $0.5225.
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Meet Daniel Abang: Crypto guru, content creator, and analyst. With a deep understanding of blockchain, he simplifies complex concepts, guiding audiences through the ever-changing crypto landscape. Trusted for his insightful analysis, Daniel is the go-to source for staying informed and empowered in the world of cryptocurrency.
