XRP Price at Risk: Godbole Outlines Two Potential Triggers.

XRP Under Pressure as CME Rejects Futures Listing and Rally Momentum Fades

XRP faces growing challenges as institutional interest remains concentrated on Bitcoin (BTC) and Ethereum (ETH), while key technical indicators suggest its recent rally may be running out of steam.

The Chicago Mercantile Exchange (CME) denied rumors on Wednesday that it planned to launch futures contracts tied to XRP and Solana’s SOL. This decision underscores the cautious approach institutions are taking, favoring established assets like BTC and ETH while regulatory uncertainties cloud the path for altcoins. CME’s focus on the leading cryptocurrencies further highlights the hurdles XRP faces in gaining broader institutional traction.

This comes as a disappointment for XRP enthusiasts, particularly after the token surged to $3.40 earlier this month following a meeting between Ripple CEO Brad Garlinghouse and President Donald Trump. The meeting had spurred optimism that regulatory clarity and increased institutional adoption were on the horizon. Ripple has long positioned XRP as a solution for cross-border payments, and analysts viewed the high-profile engagement as a positive signal.

Rally Weakness Emerging

Despite its strong performance in early January, XRP’s price action now shows signs of exhaustion. The Mayer Multiple, which compares XRP’s spot price to its 200-day simple moving average, has failed to match its December peak, creating a bearish divergence that indicates weakening upward momentum.

Additionally, the MACD histogram, a key indicator of trend strength, is printing lower highs above the zero line, further suggesting that bullish momentum is fading.

XRP is currently trading at $3.05, down 4% over the past 24 hours, according to CoinDesk data.

Potential for Recovery

While short-term indicators point to weakness, XRP’s performance remains closely linked to Bitcoin. As with most altcoins, a strong rally in BTC could lift XRP above its recent highs, invalidating the bearish outlook. For now, however, traders are likely to adopt a cautious approach as XRP contends with diminishing technical momentum and CME’s rejection of futures contracts.