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XRP Faces Potential Decline as Institutional Support Wavers

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CME's denial and weakening momentum challenge recent optimism.


XRP Faces Potential Decline as Institutional Support Wavers

The short-term outlook for XRP, the cryptocurrency developed by Ripple for cross-border payments, appears increasingly uncertain. Recent developments, including the Chicago Mercantile Exchange’s (CME) refusal to list XRP futures and weakening technical indicators, suggest that the asset may struggle to maintain its upward trajectory.


On Wednesday, CME, the leading platform for institutional trading of cryptocurrency futures, denied plans to list futures tied to XRP or Solana’s SOL token. The denial came swiftly, signaling either limited institutional interest beyond Bitcoin (BTC) and Ethereum (ETH) or regulatory uncertainties surrounding alternative tokens. XRP enthusiasts, who had hoped for a broader embrace of the cryptocurrency, viewed this decision as a setback.

"The CME’s move is a sobering reminder of the challenges non-BTC and ETH assets face in breaking into institutional markets," said John O’Malley, a crypto market analyst. The CME’s absence leaves a gap in potential tools for institutional investors to trade XRP, dampening hopes for expanded adoption in traditional financial circles.


This development is especially concerning for XRP as it directly contradicts the optimism that surged earlier this month. Ripple CEO Brad Garlinghouse’s meeting with President Donald Trump fueled expectations of mainstream adoption under the current administration. In the days following the meeting, XRP’s price skyrocketed to $3.40, spurred by speculation that the government’s pro-crypto stance would benefit Ripple’s efforts to position XRP as a key player in global remittances.


However, XRP’s rally now appears to be losing steam. At $3.05, the cryptocurrency is down 4% over the past 24 hours, according to CoinDesk data. Technical indicators are also flashing warning signs. The Mayer Multiple—a ratio comparing the current price to the 200-day simple moving average—has failed to set a new peak, indicating bearish divergence. This signals that bullish momentum is weakening despite XRP’s recent surge.

Adding to the cautionary outlook, the MACD histogram, a widely used tool to assess trend strength, is printing lower highs above the zero line. Such patterns often precede price corrections, raising concerns among traders who have been riding the recent wave of optimism.


While XRP’s price remains volatile, much like other altcoins, its trajectory could still depend on broader market conditions. Bitcoin’s ongoing rally, which has consistently influenced the performance of altcoins, could yet lift XRP to new heights. "A significant BTC rally could invalidate bearish signals for XRP," said crypto strategist Maya Lin. "But without clear institutional support, the asset’s upside potential remains uncertain."


XRP’s future could hinge on Ripple’s ability to further position the token as a key facilitator for cross-border payments. Despite the current hurdles, Ripple continues to push for broader adoption through partnerships with financial institutions and government engagement. Yet, the lack of institutional tools like CME futures underscores the challenges XRP faces in achieving the same level of legitimacy as BTC and ETH.


For now, XRP holders must navigate a landscape marked by technical resistance, declining momentum, and the uncertainty of institutional support. Whether the cryptocurrency can sustain its rally or succumb to bearish pressures will likely depend on how Ripple responds to these challenges and broader market trends.


photo source / Blockonome

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Blockonome's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.

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