XRP has decreased by 8.5% over the past seven days and has been trading below $2.50 for the past four days. The launch of XRP Futures Contracts on CME has raised concerns about price manipulation. Analysts point out similar patterns observed after Bitcoin and Ethereum futures were launched.
Technical indicators are also sending warnings. RSI, Ichimoku Cloud, and EMA lines all show weakening momentum. Some believe XRP could still increase if it breaks through an important resistance level. However, the current short-term outlook remains bearish.
XRP Futures Raise Manipulation Concerns as RSI Signals Weakening Momentum
Analysts warn that the launch of XRP Futures Contracts on CME could facilitate price manipulation. Strategies like unsecured short selling and re-hypothecation are major concerns.
Similar futures launches for Bitcoin and Ethereum led to significant price drops. Critics worry XRP might follow a similar path, especially during expiration days when "whales" typically push prices down.
Nevertheless, some view XRP futures as a step towards institutional acceptance and the potential for a spot ETF.
XRP RSI. Source: TradingView.XRP's Relative Strength Index (RSI) is currently 42.34, increasing from 35.18 two days ago but decreasing from 52.32 yesterday.
RSI is a momentum oscillating indicator ranging from 0 to 100, used to assess whether an asset is overbought or oversold; values above 70 indicate overbought conditions, while values below 30 indicate oversold zones.
At 42.34, XRP is neither overbought nor oversold, but the recent decline from 52.32 may indicate weakening momentum or an early sign of downward pressure. If RSI continues to decrease, it could suggest additional short-term price risks.
XRP Faces Resistance as Ichimoku Signals Downward Trend
The Ichimoku Cloud chart shows a change in downward price momentum. The price is currently trading below the green Tenkan-sen (conversion line) and red Kijun-sen (base line), indicating short-term and medium-term weakness.
Additionally, the forward Kumo (cloud) has turned red and slightly expanded, reflecting increasing resistance and potential downward price pressure in the near future.
XRP Ichimoku Cloud. Source: TradingView.The green Chikou Span (lagging line) is also below the price and cloud, confirming the bearish outlook from a lagging perspective.
With the price struggling to maintain above the cloud and unable to overcome important resistance levels, this structure suggests XRP remains in a correction phase.
Unless it can reclaim the Tenkan-sen and move decisively into the cloud, downside risks remain high.
XRP Traders Watch for Death Cross as Support Levels Approach
XRP's EMA lines are beginning to converge, and a potential "death cross"—where short-term EMA crosses below long-term EMA—could soon confirm the downward trend.
If this formation occurs, XRP price might test support at $2.30.
XRP Price Analysis. Source: TradingView.A break below that level could open the door for further price decline to $2.158, and in case of strong downward momentum, potentially down to $2.07.
However, if it can reverse direction and regain upward momentum, the first important resistance level to watch is $2.449.
A clear break above this level would improve technical outlook and potentially trigger a price increase up to $2.65—an approximately 14% increase.
