XRP Struggles on New Playground: Futures Push Ripple into Danger Zone
XRP Faces Strong Selling Pressure on First Day of Trading on CME – Is This a Healthy Correction or the Beginning of a New Bear Cycle?
In a historic moment for the crypto community, Ripple (XRP) officially listed its futures on the Chicago Mercantile Exchange (CME), bringing the altcoin into the playing field of traditional financial giants. However, instead of a booming debut, XRP started its CME journey with a “giant” red candle.
Cash Settlement – Increase Speculation, Reduce Supply Pressure?
Unlike traditional Spot trading where buyers actually own XRP, CME XRP futures are cash settled, opening up opportunities for price hedging and professional speculation for institutional investors. This is a major step forward for Ripple in legitimizing and expanding its influence in the global financial ecosystem.
However, the market has reacted in the opposite direction. In the 24 hours after the CME XRP futures contract was launched, XRP price fell more than 3.2%, reflecting profit-taking sentiment after an impressive rally over the past year – with an increase of more than 340% in 365 days.
Short-term selling pressure or a stepping stone for further growth?
XRP is currently trading at $2.29, below the important support zone of the 200-day EMA, while also below the mid-level of the Bollinger Band, indicating that short-term bearish pressure is still present.
However, according to the technical data:
The Chaikin Money Flow (CMF) indicator remains above zero at 0.03, reflecting that institutional money is still in the market.
Bollinger Bands show XRP is approaching a tightening zone, potentially leading to a breakout – either up or down in the next few sessions.
The nearest resistance is $2.42 – $2.45. A close above this price range could trigger a strong buying wave from both retail and institutional investors.
History Repeating? Warning from Bitcoin Futures 2017
Some analysts are wary, recalling the time when CME launched Bitcoin futures in December 2017. Just days after reaching an all-time high of nearly $20,000, Bitcoin fell more than 30%, kicking off a long crypto winter.
Will XRP follow suit? Or is this just a natural correction before entering a new chapter?
The downside to watch out for:
Futures contracts are often accompanied by increased short-term volatility.
Whales can use derivatives to manipulate short-term prices.
Market sentiment is more influenced by technical indicators than fundamentals.
Why is this important?
XRP being accepted for trading on a traditional exchange like CME is a clear sign that the crypto market is gradually coming out of the regulatory shadow and accessing large capital flows from Wall Street. While there may be a short-term correction, in the long term, this is an irreversible step in the maturation of XRP and the entire crypto market.