XRP’s Short-Term Outlook Faces Challenges, CME’s Denial of Futures and Rally Fatigue Weigh on Momentum
XRP’s short-term outlook appears to be weakening, as traditional financial giants continue to focus primarily on Bitcoin (BTC) and Ethereum (ETH), while price action hints at potential rally fatigue.
On Wednesday, the Chicago Mercantile Exchange (CME) rejected plans to introduce futures for XRP and Solana’s SOL token. This swift denial signals that institutions are hesitant to engage with cryptocurrencies beyond BTC and ETH, possibly due to regulatory uncertainty. The CME has long been a favored platform for institutions trading BTC and ETH futures and options.
The CME’s decision contradicts the earlier optimism surrounding XRP’s future, particularly after a meeting between Ripple CEO Brad Garlinghouse and President Donald Trump, which led to a surge in XRP’s price to $3.4 earlier this month. Hopes for favorable developments under Trump’s leadership had boosted expectations for XRP’s institutional adoption, as Ripple leverages XRP for cross-border payments.
However, technical indicators now suggest that XRP’s bullish momentum is losing steam. Despite XRP’s recent surge to near-record highs, the Mayer Multiple – a comparison of the spot price to the 200-day simple moving average – failed to reach new highs and remained below its December peak, signaling a bearish divergence.
This divergence points to weakening bullish momentum and an increased likelihood of a price correction. The MACD histogram, a tool used to assess trend strength and shifts, also shows lower highs, further supporting the bearish outlook.
As of now, XRP is trading at $3.05, reflecting a 4% decline over the last 24 hours, according to CoinDesk data. Given that altcoins often move in tandem with BTC, a potential rally in Bitcoin could help lift XRP above its recent highs and counteract the bearish technical signals.
