NOIDA (CoinChapter.com) — Chris Larsen, Ripple’s co-founder, has stirred controversy with a $10 million XRP donation to U.S. Vice President Kamala Harris’s election campaign. Larsen, positioning the move as a push for pro-crypto policies, claimed that Harris could help lead America in tech innovation, including blockchain.
However, Ripple’s CEO Brad Garlinghouse has been careful to distance the company from partisan politics, stating that Ripple will continue to engage with Democrats and Republicans.
While Garlinghouse supports Larsen’s right to donate, the move has sparked intense debate over its potential impact on the ongoing Ripple-SEC lawsuit and broader market sentiment towards Ripple and XRP.
Donation Attracts Backlash
The XRP community’s reaction to Chris Larsen’s $10 million XRP donation to Kamala Harris has been generally negative. Several voices expressed frustration on social media, highlighting key concerns over the broader implications for Ripple and XRP.
A crypto trader took a sarcastic jibe at the news of Larsen’s donation.Ali, a crypto analyst, sarcastically suggested that XRP and XLM should be classified as securities, reflecting concerns that the donation could attract more regulatory scrutiny. The analyst’s statement speaks to the uncertainty surrounding XRP’s legal status, especially amid the ongoing SEC lawsuit.
Another critical tweet from crypto influencer Wendy O highlighted the disconnect between Larsen’s donation and the interests of retail investors.
The crypto trader pointed out that this move appears to prioritize the “ivory towers” of political elites over the everyday XRP community, raising concerns that the donation will not serve the broader investor base.
One influencer feared the donation could lead to a token dump.Furthermore, another crypto influencer with the social media moniker Nic took a direct jab at the donation, speculating that Kamala Harris might “dump” XRP to fund her campaign. The sentiment points to a deeper fear within the community — that large-scale political donations may lead to selling pressure on the token, negatively impacting its price.
These reactions reflect a growing concern over Ripple’s political strategies. The backlash suggests that, despite Ripple’s attempts to push for favorable regulations, its community fears such moves could backfire, damaging XRP’s market credibility and price stability.
The skepticism surrounding this donation underscores broader distrust of crypto lobbying’s effectiveness and its alignment with the interests of retail investors.
XRP Price Drops: Reaction To Donation?
Meanwhile, the XRP USD pair plummeted nearly 4% on Oct. 22, reaching a daily low near $0.528 before recovering. The Ripple token faces strong resistance from its 20-day EMA (red) trendline. The sudden plummet raises the question of whether Larsen’s donation news precipitated it.
XRPUSD daily price chart with RSI. Source: TradingviewBulls must break above the EMA resistance before targeting the resistance near $0.57. Breaking and consolidating above the immediate resistance could help XRP price target the resistance near $0.633 before correcting.
On the other hand, if the downtrend continues or Harris decides to dump the XRP tokens, the Ripple token’s price could fall to the support level near $0.49. Moreover, failure of the immediate support level might force the XRP USD pair to test the support near $0.446.
The RSI for XRP remained neutral, with a score of 41.9 on the daily charts.
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