Here are two reasons why XRP may face a price decline: Godbole

The outlook for payments-focused cryptocurrency XRP looks bleak in the short term, as traditional financial giants do not appear interested in looking beyond BTC and ETH, while price action points to signs of rally fatigue.

On Wednesday, the Chicago Mercantile Exchange (CME) closed its doors. to reject Its plans to list futures contracts tied to Solana’s XRP and SOL tokens. This quick denial likely indicates that institutions are not yet ready to deal with tokens other than Bitcoin and Ether or potential regulatory hurdles. The Chicago Mercantile Exchange is the preferred place for institutions to trade futures and options related to BTC and ETH.

The Chicago Mercantile Exchange’s denial – at least for now – may be particularly troubling for XRP because it undermines the optimism surrounding XRP’s prospects under a Donald Trump presidency. XRP rose to $3.4 early this month after Ripple CEO Brad Garlinghouse met with Trump, spurring hopes of positive developments that could accelerate institutional adoption. Analysts have seen The meeting is considered a bullish signal for XRP. Ripple uses XRP primarily as a digital currency to facilitate cross-border payments and transfers.

Assembly fatigue

As the price of XRP rose to record levels last week, the Mayer Multiple indicator — which compares the spot price to the 200-day simple moving average — failed to reach new highs and remained below its peak in December, indicating a bearish divergence.

This divergence indicates weak upward momentum and increases the possibility of a price decline. In addition, the MACD histogram, a tool used to identify trend strength and changes, supports this view by printing lower highs above the zero line.

XRP was trading at $3.05, representing a 4% decline over 24 hours, according to CoinDesk data. Altcoins in general are volatile and tend to follow BTC. Therefore, a rise in BTC could lift XRP above its recent high, invalidating bearish chart signals.

Read more: Solana and XRP Jump as Trump Is Reportedly Considering ‘America First’ Strategic Crypto Reserve, but Experts Suggest Otherwise