According to Coinglass, if Ripple’s (XRP) price hits $0.60, it will wipe out millions of dollars in open contracts. The derivatives information portal indicates that this level represents the highest XRP liquidation price.

Currently, XRP trades at $0.52, having dropped from $0.60 at the beginning of October. Besides revealing the possible liquidation levels, this analysis checks if the altcoin has the potential to rebound.

Ripple Short Traders Expose Millions to Liquidation

As of this writing, the liquidation map reveals that XRP’s price action has prompted many traders to open short contracts valued at $28.40 million. A liquidation map helps traders identify potential levels where significant positions may be forced to close due to margin calls.

For context, a short contract indicates a market position anticipating that a cryptocurrency’s value will decline.

Conversely, long contracts, which reflect positions predicting price increases, are valued at $10.50 million. Therefore, this significant disparity suggests a bearish sentiment among traders. Further, this highlights the potential for massive liquidation if XRP’s price rebounds significantly.

Read more: XRP ETF Explained: What It Is and How It Works

However, a look at the Ichimoku Cloud shows that the altcoin currently faces resistance that could hinder a quick rebound. The Ichimoku Cloud gives a general overview of the market trend and spot support and resistance points.

When the cloud is above a cryptocurrency’s price, the trend is bearish. On the other hand, if the cloud is below the price, the trend is bullish, and support is strong to drive an increase. As seen below, it is the former, suggesting that it might be challenging to hit the mentioned XRP liquidation price in the short term.

XRP Price Prediction: Support Not Strong

An assessment of the XRP/USD shows that the token has fallen below the major Exponential Moving Averages (EMA). As shown below, the 20-day EMA (blue) and 50 EMA (yellow) are both above XRP’s price.

Typically, when the price falls below these indicators, the trend is bearish. Also, the fact that the longer EMA has risen above the shorter one indicates that XRP could accelerate this recent downtrend.

Read more: Ripple (XRP) Price Prediction 2024/2025/2030

If this continues, XRP’s price might drop to $0.49. On the other hand, a break above the $0.55 resistance could bring the mentioned XRP liquidation price to life in the short term.

Ripple CEO Brad Garlinghouse endorsed John Deaton, a Republican, for the Massachusetts Senate election. This comes only days after Ripple co-founder Chris Larsen donated $10 million to the Democratic Presidential candidate.

This discrepancy between Ripple’s prominent spokesmen highlights a growing pro-crypto consensus in the US electorate.

Ripple and Elections

Brad Garlinghouse, CEO of Ripple (XRP), endorsed pro-crypto lawyer John Deaton for the upcoming Massachusetts Senate election today. Deaton is a member of the Republican Party, running against Democratic candidate Elizabeth Warren. Warren recently attempted to soften her anti-crypto reputation but has a long history of regulatory efforts against cryptocurrency.

“John Deaton has been a relentless advocate for the XRP Army… and the entire crypto industry. Meanwhile, his opponent, Senator Warren spreads misinformation and lies about crypto. I endorse John enthusiastically and wholeheartedly in his run for Senate. I encourage you to donate to his campaign (as I have!)… and most importantly…VOTE FOR HIM,” he stated.

Read More: Ripple (XRP) Price Prediction 2024/2025/2030

However, Garlinghouse’s endorsement highlights the divide in the US crypto community regarding the upcoming election. Although Ripple’s CEO is endorsing a Republican Senate race, Ripple co-founder Chris Larsen has become a major booster for Democratic Presidential candidate Kamala Harris.

Ten days after donating XRP tokens worth approximately $1 million to Harris, Larsen made a subsequent $10 million donation. Garlinghouse has been an employee at Ripple for nine years and CEO for eight, a position Larsen previously held. Yet, these longtime associates and prominent company representatives are backing different sides.

As far as this Senate race is concerned, Garlinghouse may have a personal motivation. He publicly claimed that the US Government was targeting Tether earlier this year, and Warren has repeatedly called crypto “a new threat” to the country. According to recent polling, Warren is leading this race, so Garlinghouse may oppose her specifically, not her party.

Read More: Crypto Regulation: What Are the Benefits and Drawbacks?

Still, this partisan divide at Ripple’s leadership showcases the US electorate’s growing bipartisan consensus for crypto support. Democrats have consciously been attempting to rehabilitate their anti-crypto image, and Harris has made several pro-crypto campaign promises. Meanwhile, Republican Presidential candidate Donald Trump has often spoken in support of crypto.

Both Republicans and Democrats have made attempts to cast themselves as the best choice for the crypto industry this election cycle. Ultimately, an ecosystem like this is liable to produce concrete gains for the industry. The community has come a long way since its earliest days, and regulatory victories have become frequent.

The price of the Frog-themed Pepe coin (PEPE) has lost 6.50% in the last seven days. This decline could be linked to a major supply wall that has overpowered the underlying support.

Due to this rejection, PEPE’s price is currently trading at $0.0000098. In this on-chain analysis, BeInCrypto explains how this development could mean an extended downturn for the meme coin.

Pepe Faces Huge Supply Wall

According to the In/Out of Money Around Price (IOMAP) data, approximately 5,300 Pepe addresses hold 23.84 trillion tokens, which they accumulated at around $0.0000010. At the accumulation price, these tokens are worth nearly $240 million. It is also important to note that this group is currently holding the meme coin at a loss.

The IOMAP typically classifies addresses into those in profit, at breakeven, or out of the money. When a significant volume of addresses is out of the money at a specific price, it creates resistance at that level. 

Conversely, when there’s more volume in the money, it represents a support area. In Pepe’s case, the volume at $0.000010 far exceeds that at $0.0000090, suggesting the token might struggle to break above the $0.000010 resistance.

Read more: How to Buy Pepe (PEPE) With a Credit Card: A Step-by-Step Guide

Another factor suggests a price decrease in the Network Growth. This metric measures the number of new addresses interacting with a cryptocurrency.

When the reading increases, it means that the number of market participants making their first successful transaction has increased. A decrease, on the other hand, indicates that traction on the network has decreased.

If sustained, this decline could translate into less demand for PEPE. In turn, it could become difficult for the price to increase.

PEPE Price Analysis: 28% Decrease Likely

A look at the daily PEPE/USD chart shows that the Moving Average Convergence Divergence (MACD) has dropped to the negative region.

The MACD is a momentum indicator that calculates the difference between two exponential moving averages (EMAs) of an asset’s price, commonly the 12-period EMA and the 26-period EMA. 

Traders often use the crossover between the MACD and the signal line to identify potential bullish or bearish momentum. When it is positive, momentum is bullish. On the other hand, a negative reading indicates that the momentum is bearish.

Read more: Pepe (PEPE) Price Prediction 2024/2025/2030

Since it is the latter, this position could further lower the Pepe coin price. Should that remain the case, PEPE’s price might drop by 28% to $0.0000070. However, if buying pressure increases with a volume larger than the one at the $240 million resistance, the price might bounce toward $0.000014.