XRP price dropped below a crucial support level on September 6 following a global stock market downturn because of an unfavorable PMI report. The Bitcoin price also broke a key support level, causing the entire market to drop. Meanwhile, XRP has additional concerning news as Chairman of Ripple Chirs Larsen backs Kamala Harris for president in the November elections. Will the price of XRP survive this, among other worrying economic factors?
Chris Larsen Backs Harris, Good For XRP Price?
In a new letter shared by CNBC on Friday, 88 business leaders, including Chris Larsen, have endorsed Vice President Kamala Harris for president.
This move puzzled most of the XRPArmy, as the Biden-Harris government, through the U.S. Securities and Exchange Commission (SEC), has been hostile toward cryptocurrencies.
The move comes when the U.S. government’s crackdown on crypto is at an all-time high, and the global economic outlook is bleak.
Although Ripple recently won against the SEC, reducing their penalty from $2 billion to $125 million, supporting a high-profile political figure who is publicly anti-crypto could polarize opinions, attracting critics and potentially frightening off investors.’
Ripple price has decreased by 1.6% in the last 24 hours, trading at $0.5225.
Fears of Recession Could Ignite Crypto Sell-Off
The largest economy in the world may be heading into murky waters, as last week’s PMI report showed that manufacturing is weakening. The labor market is also softening, as August’s jobs report was underwhelming, with unemployment rates still relatively low.
Additionally, the U.S. Yield Curve, which tracks, turned positive again (uninverted) for the first time in over two years. Last week, the inversion has recently “uninverted,” meaning long-term rates are no longer lower than short-term rates, predicting another recession is dangerously close.
In case of a recession scenario, cryptocurrencies, including XRP price, which are known for their volatility, may be prone to significant price swings, which may drive investors away, impacting liquidity.
XRP Price Analysis Reveals 7% Short-Term Risk
The overall trend for XRP price is bearish, with a clear downward movement over the last month. Price is currently moving below the $0.54 key support level, 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. If this level breaks, it could lead to further downside toward $0.45. The most recent candle indicates bears are winning, with a small body and long wicks on the top sides. Hence, XRP is likely to form lower lows in the coming days.
Conversely, XRP may find resistance around the previous support at $0.540, although a strong bullish reaction is needed to reclaim this level. However, waiting for a confirmed bounce from the $0.485 support area before entering a long position could be a safer strategy. Reclaiming $0.540 would also signal a potential shift in momentum.
Frequently Asked Questions (FAQs)
Larsen’s endorsement might concern some investors due to the Harris administration’s anti-crypto stance, which could increase uncertainty around XRP.
Yes, a recession could trigger volatility in XRP’s price, potentially leading to sell-offs and price swings.
Given the current market conditions and negative economic outlook, a short-term rise to $1 seems unlikely.
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Evans Karanja
Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video gaming. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes that blockchain will revolutionize many industries in the years to come. When he is not writing, you can find him playing video games or chasing waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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