XRP Faces Uncertainty as CME Denies Futures Listing and Rally Shows Signs of Fatigue
XRP is grappling with mounting headwinds as institutional focus remains centered on Bitcoin (BTC) and Ethereum (ETH), while technical signals hint at a loss of momentum in its recent price rally.
On Wednesday, the Chicago Mercantile Exchange (CME) refuted claims that it was planning to launch futures contracts for XRP and Solana’s SOL, dealing a blow to market expectations. The move signals institutional reluctance to explore altcoin derivatives beyond BTC and ETH, possibly due to regulatory concerns. As the preferred platform for institutional futures trading, CME’s decision is a setback for XRP’s broader adoption narrative.
This development follows XRP’s climb to $3.40 earlier in January, driven by optimism after Ripple CEO Brad Garlinghouse met with President Donald Trump. The meeting had raised hopes for regulatory clarity and greater institutional engagement with XRP, which Ripple primarily uses for cross-border payment solutions. Analysts had interpreted the event as a bullish catalyst for the token.
Technical Indicators Highlight Weakness
Despite its strong start to the year, XRP’s rally appears to be losing momentum. The Mayer Multiple, which compares the spot price to the 200-day simple moving average, has failed to surpass its December peak, creating a bearish divergence that signals waning strength.
Meanwhile, the MACD histogram, a measure of trend strength, is showing lower highs above the zero line, further indicating a potential slowdown in the bullish trend.
As of Wednesday, XRP was trading at $3.05, down 4% on the day, according to CoinDesk data.
Hope for a Reversal
Despite the bearish signals, XRP’s fate remains tied to Bitcoin’s performance. Like many altcoins, XRP tends to follow BTC’s trajectory, and a renewed rally in Bitcoin could invalidate the bearish indicators and push XRP to new highs. For now, however, the denial of a CME futures listing and weakening technical momentum have cast a shadow over XRP’s near-term prospects.
