XRP price risks further drop after Chris Larsen backs Kamala Harris

XRP's (CRYPTO:XRP) price is facing a potential 7% decline in the short term due to a combination of unfavorable economic indicators and a recent political endorsement by Ripple Chairman Chris Larsen.

On September 6, XRP fell below a crucial support level, triggered by a global stock market downturn following an unfavorable PMI report.

Bitcoin also broke a key support level, contributing to the overall market decline.

Concerns are mounting as Larsen, along with 87 other business leaders, endorsed Vice President Kamala Harris for the upcoming presidential election, adding another layer of uncertainty to XRP's market outlook.

Larsen's endorsement of Harris has puzzled many in the XRP community, especially given the Biden-Harris administration's previous stance on cryptocurrencies, including a challenging period of regulatory scrutiny through the U.S. Securities and Exchange Commission (SEC).

Although Ripple recently achieved a partial victory against the SEC, with penalties reduced from $2 billion to $125 million, backing a political figure perceived as anti-crypto could polarize opinions and potentially deter investors.

XRP has seen a 1.6% decrease over the past 24 hours.

Economic factors are also contributing to the negative sentiment.

The U.S. PMI report indicated weakening manufacturing, and the labor market showed signs of softening in August, despite low unemployment rates.

Additionally, the U.S. Yield Curve has recently "uninverted" after more than two years, a sign that could indicate an imminent recession.

This scenario poses risks for volatile assets like cryptocurrencies, including XRP, which could see significant price swings in such an environment.

The next key support level for XRP is around $0.485, a point it last reached in mid-August.

A break below this level could see the price slide further to $0.45.

On the upside, XRP may face resistance around $0.54.

However, a strong bullish reaction would be required to regain this level and signal a potential shift in momentum.

At press time, the XRP (XRP) price was $0.5297.