XRP Price Forecast: After 4% Gains in May, Ripple CEO Announces $25M Donation for US Elections

Ripple (XRP) price closed May 2024 at $0.52 gaining 4%, but following Ripple CEO’s recent $25 million donation towards US elections, XRP traders are showing optimism as June 2024 unfolds. 

Ripple CEO’s $25M Election Donation Fails to Halt 8% Losses

During the month of May 2024, XRP price increased 4%, from an opening price of $0.50 to close at $0.52. The Ethereum ETF approval, and some progress in the case with the US SEC were the major bullish catalysts for XRP during May 2024.

While XRP was able to close the month with 4%, that figure could have been significantly higher, if XRP did not succumb to a prolonged correction phase in the last 10 days of May.

As depicted in the chart above XRP price rapidly declined 8.14% after having climbed to a monthly peak of $0.56 on May 21 as swing traders opted to book early profits amid the market euphoria surrounding Ethereum ETFs approval.

However, XRP price dip halted at the $0.51 territory after Ripple CEO Brad Garlinghouse announced a $25 million donation towards the upcoming US Elections on May 28.

“It’s critical that the US catch up with other leading economies and develop sensible (and CLEAR) rules for crypto. Ripple’s latest $25M contribution to Fairshake is an investment in the inevitable march of progress and adoption of crypto and blockchain technologies – the future of finance – and a message to backward looking politicians that their failed policies will not be tolerated!”

Ripple CEO Brad Garlinhouse

Ripple’s $25 million donation went to FairShake, a platform that aims to support election candidates who are visibly committed to supporting crypto-friendly policies, and policies that support technological innovation.

This key development appears to have spurred investor confidence, last week, which helped to keep XRP price from breaking below the critical support level at $0.50.

However the bullish impact did not last, as XRP bears forced another 3% price correction between May 28 and May 31.

XRP Open Interest Holds at $600M Despite Price Dip

Looking at the XRP derivatives market, the lack of a major bullish catalyst has seen the bears seize the initiative to mount more short positions in recent days. A move that could set XRP on a downward trajectory in first half of June 2024.

Coinglass’ data below shows a rare divergence between XRP’ Open Interest and Price action in the last 10-days.

As seen above, while XRP price has declined 8% since May 21, the Open Interest only dipped 2%, holding up above $612 million at the time of writing in June 2.

This scenario typically indicates a bearish sentiment. If XRP prices are falling and open interest is not declining at pace, it suggest SHORT traders are not closing their positions to taking profits. Instead, there is sustained selling pressure and the expectation of further price declines.

If the bears seize control, XRP price could be at risk of falling below $0.50 in the week ahead.