Godbole Points to Two Indicators That Suggest XRP Price Weakness.

XRP Faces Bearish Outlook as CME Denies Futures Listing and Rally Momentum Weakens

The short-term outlook for XRP, the payments-focused cryptocurrency, has turned bleak as major financial institutions continue to focus on Bitcoin (BTC) and Ethereum (ETH), leaving alternative tokens like XRP on the sidelines. Additionally, technical indicators suggest the recent rally may be losing steam.

On Wednesday, the Chicago Mercantile Exchange (CME) dismissed rumors of plans to list futures tied to XRP and Solana’s SOL token. This denial underscores the hesitancy among institutions to expand their offerings beyond BTC and ETH, potentially due to regulatory uncertainties. CME, a trusted venue for institutional futures and options trading, remains committed to the two leading cryptocurrencies for now.

The CME’s decision is a blow to XRP, especially in light of the optimism generated earlier this month under Donald Trump’s presidency. XRP had surged to $3.40 after Ripple CEO Brad Garlinghouse met with President Trump, fueling speculation about potential regulatory or institutional breakthroughs that could boost XRP adoption. Ripple uses XRP to streamline cross-border payments and remittances, and analysts had viewed the meeting as a bullish signal for the token.

Signs of Rally Fatigue

Despite reaching near-record highs last week, XRP’s price action now shows signs of weakening bullish momentum. The Mayer Multiple, which compares XRP’s spot price to its 200-day simple moving average, failed to exceed its December peak, signaling a bearish divergence.

This divergence suggests that the uptrend may be faltering. Additionally, the MACD histogram, which measures trend strength and potential reversals, has printed lower highs above the zero line, reinforcing the likelihood of a cooldown.

XRP was trading at $3.05 on Wednesday, down 4% over the past 24 hours, according to CoinDesk data.

Potential for Reversal

While the outlook appears bearish in the short term, XRP’s fate is still tied to Bitcoin’s performance. Altcoins like XRP are highly correlated with BTC, and a renewed rally in Bitcoin could lift XRP above its recent highs, invalidating the bearish technical signals. For now, traders will likely remain cautious as XRP navigates the fallout from CME’s denial and weakening momentum indicators.