XRP Price Analysis Reveals 7% Short-Term Risk as Chris Larsen Backs Kamala Harris

XRP price dropped below a crucial support level on September 6 following a global stock market downturn because of an unfavorable PMI report.

Ripple (XRP) price dropped below a crucial support level on Monday following a global stock market downturn triggered by an unfavorable PMI report.

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 crypto crackdown 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 (XRP) 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.

Moreover, the U.S. Yield Curve, which tracks interest rates, 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)

1. Will Chris Larsen endorsing Kamala Harris affect the XRP price?

The endorsement of Kamala Harris by Chris Larsen, Chairman of Ripple, has sparked mixed reactions within the XRP community. Some believe that this move could positively influence the XRP price, especially if Harris wins the upcoming presidential election. However, it’s essential to note that the relationship between the Biden-Harris administration and cryptocurrencies has been strained, with the SEC under their supervision engaging in several lawsuits against crypto firms. Additionally, Harris herself has not publicly expressed strong support for cryptocurrencies. Therefore, while Larsen’s endorsement may generate some buzz, its direct impact on the XRP price remains uncertain.

2. Could a recession affect XRP price?

In the event of a recession, high-risk assets like cryptocurrencies are typically among the first to be sold off by investors seeking to preserve capital and reduce exposure to volatility. This behavior could lead to a sharp decline in XRP price, especially considering its volatility and the fact that investors may be pivoting toward more stable assets during a recession.

However, it’s also worth noting that the XRP price has demonstrated resilience in the past, even during unfavorable market conditions. This resilience could be attributed to the strong community support for XRP and the ongoing developments surrounding Ripple, such as their partnership with MoneyGram and the recent legal victory against the SEC.

3. Will XRP reach $1 soon?

The XRP community has been eagerly anticipating the token’s price reaching the $1 mark for an extended period. However, several factors could hinder XRP from reaching $1 anytime soon.

One key factor is the total supply of XRP, which currently stands at 50 billion tokens. For XRP to reach $1, its market capitalization would need to

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