The XRP price remained on edge on Monday morning as it continued to underperform other popular coins like Bitcoin, Tron, and Solana. Ripple was trading at $0.5132, a few points higher than last week’s low of $0.4860.
Key catalysts for Ripple
The XRP price has been under pressure as investors react to several catalysts. First, it has been punished by the recent donations by Chris Larsen, the company’s founder to Kamala Harris in her ongoing race with Donald Trump.
He has given over $11.8 million in funds to her campaign, becoming her biggest financier in the crypto industry. In contrast, most people in the sector have invested heavily in Trump’s campaign.
Trump has expressed more support for the crypto industry. Besides, data by Arkham shows that he owns cryptocurrencies worth almost $6 million.
Therefore, some XRP holders sold off their coins in protest of his support. Some of these funds likely moved to Trump meme coins like MAGA and TRUMP, which have done well in the past few weeks.
Second, XRP token has remained under pressure because of the ongoing happenings between Ripple Labs and the Securities and Exchange Commission (SEC). Last Thursday, Ripple Labs submitted its Form C, or its pre-argument statement for civil appeal. In it, the company requested the judge to approach with a de novo standard.
The ongoing legal battle started in 2020 when the SEC accused Ripple Labs of selling unregistered securities to investors. In a ruling last year, Judge Analisa Torres ruled that some of the XRP sales were not securities. And in another ruling this year, she ordered the company to pay a $125 million fine, lower than the $2 billion that the SEC was seeking.
Ripple faces additional risks ahead. The most notable one is the fact that the XRP Ledger has not attracted any major developers. There is also a risk that Ripple’s upcoming stablecoin will not be successful because of Tether’s strong market share. For example, PayPal’s PYUSD, which was launched in 2023, has not had a major impact on the industry.
XRP price analysis
XRP chart by TradingView
The daily chart shows that the Ripple price has been on a strong downward trend in the past few weeks. It has dropped from last month’s high of $0.6660 to about $0.5020.
Ripple has formed a death cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other. In most periods, this is one of the most bearish patterns in the market.
The MACD indicator has moved below the zero line. Therefore, the XRP price will likely continue falling as sellers target the next important support at $0.4312, its lowest point on August 5.
