Ripple Co-Founder Endorses Kamala Harris — XRP Price Risks 12% Decline

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”

Garlinghouse also noted the end of the Ripple Swell conference , which had been ongoing for the past three days. During the conference, the team announced several partners for Ripple’s stablecoin, Ripple USD (RLUSD), including BitStamp.

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”.

XRP Price Decline

The daily time frame XRP analysis shows the XRP price has traded inside an ascending parallel channel since June. The movement inside the channel could be an A-B-C corrective structure, part of an irregular flat correction.

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.

Furthermore, XRP fell below the minor support at $0.54.

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.

XRP Price to $0.46

The XRP price has traded in a corrective pattern since July. The wave count and price action indicate that the price is in the final portion of this correction.

The decline could end after another drop to the pattern’s support trend line at $0.46.