The price of Ripple’s XRP is facing significant pressure and could potentially drop to $0.45 in the near term, following a series of adverse developments. On September 6, Ripple’s price fell below a crucial support level amid a broader global stock market downturn triggered by a disappointing Purchasing Managers’ Index (PMI) report. This decline in the stock market was compounded by Bitcoin’s breach of a key support level, leading to a widespread drop across the cryptocurrency market.
Adding to Ripple’s troubles, Ripple Chairman Chris Larsen recently endorsed Vice President Kamala Harris for the upcoming presidential election. This endorsement, detailed in a letter published by CNBC, has drawn criticism and concern from the XRP community. The Biden-Harris administration, through the U.S. Securities and Exchange Commission (SEC), has been notably adversarial towards cryptocurrencies, which has heightened scrutiny and regulatory pressures on the industry.
The endorsement of a political figure with a history of challenging the crypto sector could potentially alienate investors and exacerbate XRP’s current challenges. Despite Ripple’s recent legal victory against the SEC, which reduced their penalty from $2 billion to $125 million, the backing of Harris could polarize opinions and deter investment.
In the last 24 hours, XRP has experienced a 1.6% decline, trading at approximately $0.5225. This decline reflects broader economic uncertainties, including a weakening manufacturing sector and a softening labor market. The latest PMI report and August’s underwhelming jobs report suggest that the U.S. economy may be heading towards a recession. Compounding the issue, the U.S. Yield Curve recently turned positive for the first time in over two years, signaling a possible recession on the horizon.
In a recessionary scenario, cryptocurrencies like Ripple could face severe volatility and substantial price swings, potentially leading to further investor withdrawals and decreased liquidity. Ripple’s current price trend is bearish, with XRP trading below the $0.54 support level. The next critical support zone is around $0.485, marked by previous swing lows in mid-August. A breach of this level could result in further declines toward $0.45.
Technical analysis indicates that XRP is likely to continue forming lower lows in the near term, with bearish momentum prevailing. Investors should watch for a potential rebound at the $0.485 support level before considering long positions. Reclaiming the $0.540 support level could signal a shift in momentum, but this would require a strong bullish reaction.
Also Read: XRP Eyes 114% Surge To $1 – Will History Repeat After 2017 And 2021 Breakouts?
In summary, Ripple’s price is under significant pressure from both economic uncertainties and political endorsements. The possibility of a drop to $0.45 highlights the volatile nature of XRP and the broader cryptocurrency market amid current economic and regulatory challenges.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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