XRP (XRP) has emerged as one of the worst-performing top cryptocurrencies, down 5.3% in the past 24 hours to reach $0.53 on Oct. 22. In comparison, the broader crypto market has declined by 3%.
Key catalysts driving the XRP prices lower today include Ripple’s multi-million dollars worth of donation to the Kamala Harris campaign and markets considering the prospects of slower interest rate cuts in the United States.
Ripple co-founder donates $10M in XRP to Harris
XRP’s price decline today coincides with the news of Ripple co-founder Chris Larsen’s $10 million donation in XRP to support Kamala Harris’s US presidential campaign.
On Oct. 21, Larsen confirmed that he contributed the sum to Future Forward USA, a super PAC backing the Democratic presidential candidate. That followed Ripple’s $1 million donation to the same group in August.
The donation sparked skepticism among XRP investors, with some speculating that Kamala Harris may liquidate the entire crypto contribution from Larsen, potentially impacting existing XRP holders.
For instance, an X user responded to Larsen’s announcement:
“The narrative “Ripple dumps XRP on holders” has now become “Kamala dumps XRP on holders”…. I absolutely respect your right to donate and vote for whomever you want – but the optics on this will not go over well with the XRP community.”
Some analysts further pointed out the anti-crypto stance taken by the Democrats.
For instance, Chip, the co-founder of the crypto podcast On The Chain, reminded that most Democrats have not shifted their position on cryptocurrency ahead of the US elections, arguing that Harris has not delivered any major announcements on crypto in her presidential campaign.
Meanwhile, Senator Elizabeth Warren continues to push anti-crypto rhetoric, her recent debate with John Deaton being the prime example.
The donation, investor fears of a large sell-off, and broader concerns about the Democratic Party’s crypto stance likely compounded to trigger XRP’s price drop today.
Traders dial back aggressive rate-cut bets
XRP’s price is likely being influenced by broader market factors, particularly as traders anticipate slower interest rate cuts by the Federal Reserve due to a robust US economy, a sentiment iterated by Dallas Fed President Lorie Logan in her Oct. 11 speech.
Excerpts from the address:
“If the economy evolves as I currently expect, a strategy of gradually lowering the policy rate toward a more normal or neutral level can help manage the risks and achieve our goals.”
The remarks followed a sharp increase in the benchmark US 10-year Treasury note yields, which climbed to its highest level in three months on Oct. 22. This jump sapped the market’s appetite for non-yielding assets, including cryptocurrencies like XRP.
XRP unable to close above key MA resistances
XRP’s decline today is partly driven by technicals, facing selling pressure around its two key exponential moving averages (EMAs): the 50-day EMA (red) and the 200-day EMA (blue). Both resistances are around the $0.55 level.
As of Oct. 22, XRP’s price was testing the lower trendline (at around $0.52) of its prevailing ascending triangle channel as support, signaling a potential rebound toward the 50-day and 200-day EMAs in October.
Related: XRP may face volatility as market waits for ‘concrete results’ — Analyst
A decisive close above the EMAs may enable an XRP price rally toward the triangle’s upper trendline at around $0.64, akin to the gains witnessed during July, August and September.
On the flip side, a decisive close below the triangle’s lower trendline risks sending the XRP price toward $0.50, a psychological support level.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
