Chris Larsen Donates $10 Million in XRP to Kamala Harris | Credit: Derek Fenech
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Key Takeaways
Ripple Co-founder Chris Larsen made a $10 million donation to Kamala Harris
The XRP price has traded inside an ascending parallel channel since July.
Is an XRP breakout or breakdown from the parallel channel more likely?
Despite a crypto market resurgence in October, the XRP price has not fared well. On the contrary, it has fallen by 12% so far this month. Moreover, XRP recently broke out of a short-term corrective pattern.
While Ripple made the news after its Co-Founder donated $10 million XRP to Kamala Harris, the added attention has not resulted in any notable positive price movement so far.
Mixed Ripple Endorsements
Ripple Co-founder Chris Larsen announced a $10 million donation to Kamala Harris, the U.S. Democratic presidential candidate. He stated that she represents a new approach to technology innovation for Democrats.
Ripple CEO Brad Garlinghouse commented on its announcement, stating that while he respects everyone’s right to support whomever they see fit, “this administration’s misguided war on crypto needs to change”
The same day, Elon Musk was asked about the potential of XRP Ledger being incorporated into financial institutions. While stopping short of giving an endorsement, he reiterated his support for cryptocurrencies in general, stating that it is a “bulwark against centralized control”.
If waves A:C has a 1:1 ratio, XRP will reach the channel’s ascending support trend line at $0.46. Because of the confluence of support levels, the XRP price may reach a low inside this area.
Besides the wave count, the price action and technical indicators support the decline. The price action shows a breakdown from the channel’s midline and its validation as resistance (black icon).
The daily Relative Strength Index (RSI) is decreasing and is below 50, while the Moving Average Convergence/Divergence (MACD) is close to making a bearish cross and falling.
As a result, the daily time frame predicts an XRP price breakdown towards the support trend line.
Breakdown Ahead
The shorter-term six-hour chart agrees with this bearish outlook. It shows that XRP broke down from an ascending parallel channel, indicating that the bounce ongoing since Aug. 3 has ended.
XRP created a large bearish candlestick during the breakdown, making it unlikely that this was a failed attempt at moving lower.
The six-hour RSI decreased below 50 during the breakdown, and the MACD fell below 0.
When combined with the bearish readings from the daily time frame, the six-hour one suggests that a drop toward the long-term channel’s support trend line at $0.46 is likely.
The decline could end after another drop to the pattern’s support trend line at $0.46.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
