As a seasoned researcher with years of experience navigating the tumultuous world of cryptocurrencies and traditional markets, I can’t help but feel a sense of deja vu when analyzing the current state of XRP. The price drop below a crucial support level, the unfavorable PMI report, the global market downturn, and the additional concerns surrounding Ripple’s Chairman endorsing a high-profile political figure known for her anti-crypto stance – it all feels eerily familiar.
On September 6, the price of XRP dipped beneath a significant support point due to a broader stock market slump triggered by an unfavorable PMI report. Simultaneously, Bitcoin‘s price breached a vital support level, leading to a general market decline. To add to XRP’s woes, Ripple‘s chairman, Chris Larsen, has publicly endorsed Kamala Harris for the November elections. With this news and other economic uncertainties in play, will the value of XRP hold steady?
Chris Larsen Backs Harris, Good For XRP Price?
88 business figures, among them Chris Larsen, have publicly supported Vice President Kamala Harris as a potential presidential candidate, as outlined in a recent letter released by CNBC on Friday.
The majority of XRP supporters found it perplexing, given that the administration of President Biden-Harris, via the U.S. Securities and Exchange Commission (SEC), has shown a generally unfavorable stance towards cryptocurrencies.
Given that the U.S. authorities’ clampdown on cryptocurrencies has reached its peak, and the worldwide economic forecast looks dismal, this is a time when a shift might occur.
Despite Ripple successfully lowering their penalty from $2 billion to $125 million following their court battle with the SEC, aligning with a high-profile politician who openly criticizes cryptocurrency might stir controversy. This could lead to increased criticism and potential loss of investor confidence.
Ripple price has decreased by 1.6% in the last 24 hours, trading at $0.5225.
Fears of Recession Could Ignite Crypto Sell-Off
It’s possible that the world’s largest economy could be navigating troubled waters, given the recent PMI report suggesting a decline in manufacturing strength. Additionally, the job market appears to be losing some momentum, as August’s employment figures fell short of expectations, despite unemployment rates remaining comparatively low.
Furthermore, after more than two years, the U.S. Yield Curve, which monitors interest rate differences between long-term and short-term loans, has become positive once again. This change, known as “uninversion,” occurred last week, indicating that long-term rates are no longer below short-term rates. This situation suggests that a potential recession might be imminently close.
As an analyst, when contemplating a potential economic downturn or recession, I would caution that the prices of cryptocurrencies like XRP, renowned for their volatile nature, could experience substantial fluctuations. These unpredictable shifts might deter investors, ultimately affecting the overall market liquidity.
XRP Price Analysis Reveals 7% Short-Term Risk
The general direction for XRP‘s value has been declining, showing a definite drop over the past month. Currently, its price is dipping beneath the significant support level of $0.54, suggesting that the downtrend may persist further.
The potential resistance level for Ripple’s price lies approximately at $0.485, which was previously established as a trough during mid-August. If this barrier gets breached, we might witness a drop towards $0.45. As of late, the candlestick pattern suggests that bears are currently dominating, with a compact body and extended upper wicks. This trend could potentially lead to successive lows in Ripple’s price over the next few days.
Instead of jumping straight to $0.540, XRP might encounter resistance at its old support level. But if the bulls show significant strength, they might be able to push it back up to this point. A more secure approach could be to hold off on buying until there’s a clear bounce from the $0.485 support level. Recapturing $0.540 would suggest a possible change in trend direction.
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2024-09-09 06:18