XRP price remained volatile on Monday morning, continuing to underperform other popular coins such as Bitcoin, Tron, and Solana. Ripple is trading at $0.5132, a few points above last week’s low of $0.4860.
Ripple’s main catalyst
XRP price is under pressure as investors are reacting to several factors. First, the company’s founder, Chris Larsen, was punished for recent donations to Kamala Harris, who is running against Donald Trump.
He contributed more than $11.8 million to her campaign, making her her biggest donor in the crypto industry. By contrast, most people in the field have invested heavily in the Trump campaign.
Trump expressed further support for the cryptocurrency industry. Furthermore, Arkham’s data shows that he owns approximately $6 million worth of cryptocurrencies.
Therefore, some XRP holders sold off their coins in protest of his support. Some of these funds likely moved into Trump meme coins such as MAGA and TRUMP, which have performed well over the past few weeks.
Second, the XRP token remains under pressure due to ongoing events between Ripple Labs and the Securities and Exchange Commission (SEC). Last Thursday, Ripple Labs filed Form C, or pre-oral statement, for the civil appeal. In it, the company asked the judge to approach the case with new standards.
The ongoing legal battle began in 2020 when the SEC accused Ripple Labs of selling unregistered securities to investors. In a ruling last year, Judge Annalisa Torres ruled that some of the XRP sales were not securities. And in a separate ruling this year, he ordered the company to pay a $125 million fine, less than the $2 billion sought by the SEC.
Ripple will face further risks in the future. Most notable is the fact that the XRP Ledger has not attracted any major developers. There is also a risk that Ripple’s next stablecoin will not be successful due to Tether’s strong market share. For example, PayPal’s PYUSD, launched in 2023, has not had a significant impact on the industry.
XRP price analysis
XRP Chart by TradingView
The daily chart shows that Ripple price has been in a strong downward trend over the past few weeks. The currency has fallen to around USD 0.5020 from the previous month’s high of USD 0.6660.
Ripple has formed a death cross pattern as its 50-day and 200-day exponential moving averages (EMAs) have crossed each other. For most periods, this is one of the most bearish patterns in the market.
The MACD indicator has fallen below the zero line. Therefore, XRP price is likely to continue falling as sellers target the next key support, the August 5th low of $0.4312.
