XRP Faces Challenges Amid Institutional Hesitation

According to CoinDesk, the short-term outlook for XRP appears challenging as major financial institutions show limited interest beyond Bitcoin (BTC) and Ethereum (ETH). Recent price movements suggest signs of rally fatigue for XRP. On Wednesday, the Chicago Mercantile Exchange (CME) dismissed any plans to list futures tied to XRP and Solana's SOL token. This quick denial suggests that institutions are not yet prepared to engage with tokens other than BTC and ETH, possibly due to regulatory concerns. The CME is a favored platform for institutions trading futures and options linked to BTC and ETH. The CME's decision is particularly troubling for XRP, as it dampens the optimism that had been building around its prospects during Donald Trump's presidency. Earlier this month, XRP's price surged to $3.4 following a meeting between Ripple's CEO Brad Garlinghouse and Trump, which had sparked hopes for positive developments that could boost institutional adoption. Analysts had interpreted the meeting as a bullish indicator for XRP. Ripple primarily uses XRP as a digital currency to facilitate cross-border payments and remittances. As XRP's price approached record highs last week, the Mayer Multiple, which compares the spot price to the 200-day simple moving average, failed to reach new peaks and remained below its December high, indicating a bearish divergence. This divergence suggests weakening bullish momentum and raises the possibility of a price decline. Additionally, the MACD histogram, a tool used to assess trend strength and changes, supports this view by showing lower highs above the zero line. XRP was trading at $3.05, marking a 4% decrease over a 24-hour period, according to CoinDesk data. Altcoins, in general, are known for their volatility and often follow BTC's trends. Therefore, a rally in BTC could potentially lift XRP above its recent high, counteracting the bearish chart signals.