XRP Futures Prompt Concerns of Potential Price Manipulation Amid Weakening Momentum Indicators

• XRP has experienced a significant decline of 8.5% over the past week, now trading below $2.50, as fears of price manipulation increase with the launch of CME futures.

• Technical indicators are signaling bearish momentum, with the RSI, Ichimoku Cloud, and EMAs indicating potential further declines.

• Industry experts cite a noteworthy correlation between current trends and historical price actions of Bitcoin and Ethereum post-futures launch.

The launch of CME XRP futures triggers fears of price manipulation, leading to an 8.5% price drop while technical indicators show bearish trends.

Concerns Rise as XRP Futures Ignite Price Manipulation Fears

The recent introduction of XRP futures on the Chicago Mercantile Exchange (CME) has raised alarms regarding potential price manipulation. Analysts warn that tactics such as naked shorting and rehypothecation could create volatility, similar to what was observed during the launches of Bitcoin and Ethereum futures.

Critics argue that the historical parallels are concerning. Following past futures introductions, both Bitcoin and Ethereum suffered sharp declines, highlighting the vulnerability of new futures contracts to bearish market pressures.

XRP RSI. Source: TradingView.

The current Relative Strength Index (RSI) for XRP stands at 42.34, a slight improvement from 35.18 two days ago but a notable decrease from 52.32 just yesterday. This oscillation suggests the asset is in a state of hesitation, with neither overbought nor oversold conditions prevailing. However, a persistent decline might indicate accumulating downside risks.

Ichimoku Cloud Analysis Reveals Bearish Sentiment for XRP

The Ichimoku Cloud analysis further underscores a bearish stance, showing XRP trading below critical indicators such as the Tenkan-sen and Kijun-sen. This positioning indicates a potential for continued weakness in both short and medium-term outlooks as the Kumo has turned red, suggesting heightened resistance levels.

XRP Ichimoku Cloud. Source: TradingView.

The bearish momentum is further confirmed by the Chikou Span, which is falling behind the price and cloud structure. The inability of XRP to break key resistance levels suggests the asset is still trapped in a corrective phase, with failure to regain previous highs posing additional risks to the downside.

Death Cross Formation Ignites Concerns Over Further Declines

Traders are currently monitoring the convergence of the Exponential Moving Averages (EMA) as a potential death cross signals impending bearish trends. This phenomenon occurs when the short-term EMA dips below the long-term EMA—a technical indicator that could foretell further declines.

XRP Price Analysis. Source: TradingView.

If this formation materializes, XRP’s price may retest critical support at $2.30. A breach below this level could catalyze more significant declines down to $2.158, or in a scenario of strong bearish momentum, potentially as low as $2.07. Conversely, should XRP reverse into a bullish trajectory, reclaiming $2.449 would be essential to shift the technical outlook positively, possibly triggering an ascent toward $2.65.

Conclusion

The current conditions surrounding XRP indicate a precarious market state, shaped significantly by the recent CME futures launch. Analysts point to various technical indicators showcasing weakening momentum, suggesting that unless key resistance levels are reclaimed, the outlook remains cautiously bearish. Traders and investors should navigate these uncertain waters carefully, keeping an eye on possible support levels and the broader market sentiment.