The short-term outlook for payments-focused cryptocurrency XRP looks grim, as traditional financial giants seem uninterested in looking beyond BTC and ETH, and price action is showing signs of rally fatigue.
On Wednesday, the Chicago Mercantile Exchange (CME) rejected His plans are to list futures linked to XRP and Solana’s SOL token. This rapid rejection suggests that institutions are not ready to deal with tokens other than bitcoin and ether or potential regulatory hurdles. CME is the preferred venue for institutions to trade BTC and ETH related futures and options.
CME’s rejection – at least for now – could be especially dangerous for XRP, as it undermines the optimism surrounding XRP’s future under Donald Trump’s presidency. After Ripple CEO Brad Garlinghouse met with Trump, XRP rallied to $3.4 earlier this month on hopes of positive developments that could accelerate institutional adoption. Analysts reviewed meeting as a bullish sign for XRP. Ripple uses XRP primarily as a digital currency to facilitate cross-border payments and money transfers.
Rally fatigue
As XRP’s price neared a record high last week, the Mayer Multiple, which compares the spot price to its 200-day simple moving average, failed to reach new highs and remained below its December peak, indicating a bearish divergence.
This divergence represents weakened growth momentum and increases the potential for price declines. Additionally, the MACD histogram, a tool used to determine trend strength and reversals, supports this view by printing lower highs above the zero line.
According to CoinDesk data, XRP changed hands at $3.05, down 4% on a 24-hour basis. Altcoins, in general, are volatile and follow BTC. Thus, a rally in BTC could lift XRP above its recent high and cancel out bearish chart signals.
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