Market concerns that perpetual contracts will impact traditional exchange businesses, ICE and CME both enter oversold territory.

Deep Tide TechFlow news: On June 27, as concerns about new trading products such as perpetual contracts potentially impacting the business of traditional exchanges continued to intensify, the share prices of Intercontinental Exchange (ICE) and CME Group have remained under sustained pressure this week.

Data shows that the current Relative Strength Index (RSI) for both companies has fallen to 24.4. Generally, an RSI below 30 is considered oversold, which means there may be an opportunity for a technical rebound in the stock price in the near term; while an RSI above 70 is typically viewed as overbought, carrying a risk of a pullback.

Market analysis believes that the main reason investors have recently sold shares of exchange operators is that they expect the prediction market and other innovative financial products, such as perpetual contracts, to attract increasing trading activity, which may create competitive pressure for the derivatives business of traditional exchanges.

Earlier, CME Group filed a lawsuit against the U.S. Commodity Futures Trading Commission (CFTC) over regulatory issues. The focus of the dispute is that the CFTC approved prediction market platform Kalshi to roll out Bitcoin perpetual contract products at the end of May.

In terms of share-price performance, CME is down about 10% cumulatively this week, while ICE has fallen by more than 7%. As of now, both companies’ declines for June have already reached double digits.