Drop to $2 Next or Breakout Brewing?

XRP drops to $2.40 as analysts observe Wave 5 correction towards $2. ETF hopes and long-term construction nonetheless assist a bullish setup.

XRP has fallen to $2.40 after a 5% drop over 24 hours and eight% decline over the previous week. The current pullback started from the $2.70 degree, which analysts mark as the highest of a correction part.

Because the asset approaches key assist zones, short-term stress continues whereas longer-term patterns stay intact.

Correction Nearing Key Assist Zone

Analyst ChartNerd shared that the present drop aligns with the fifth wave of a bigger correction, which began after XRP reached $2.70. Worth motion since then has adopted a five-wave construction, with the ultimate leg presumably ending close to $2.00. The world simply above this degree, labeled as vertical accumulation assist, has held throughout previous pullbacks. ChartNerd added,

“Doable wick to $2 doable,” whereas additionally noting that “no macro construction has been misplaced.”

This means the broader development has not been invalidated. The asset continues to commerce inside a rising channel, and assist ranges from earlier cycles stay in place. A reversal close to $2.00 may affirm the completion of this wave.

In the meantime, XRP has now spent over a yr buying and selling above its 2021 highs and prior all-time excessive candle closes.

Quick-Time period Chart Factors to Weak point

Separate evaluation from Ali Martinez exhibits bearish motion within the short-term outlook. The 4-hour chart reveals XRP was rejected close to $2.57 and has since slipped under $2.45. A decrease excessive sample is forming, with downward stress from transferring averages contributing to continued weak point.

$XRP displaying indicators of weak point. A retest of $2.25 is likely to be subsequent! pic.twitter.com/RMYX15hbRt

— Ali (@ali_charts) November 2, 2025

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His chart outlines a projected transfer by decrease assist zones, presumably reaching $2.25 earlier than any restoration. The construction factors to a short-term downtrend, although longer-range assist ranges are nonetheless being revered.

ETF Expectations and Market Sentiment

As CryptoPotato lately reported, curiosity in a possible spot XRP ETF has grown in current weeks. In response to prediction markets like Polymarket, approval is extensively anticipated, with present odds being at nearly 100%. The conclusion of Ripple’s authorized case with the SEC earlier this yr eliminated a significant barrier, clearing the way in which for doable regulatory progress.

XRP briefly moved above $2.65 following renewed optimism and broader market assist from a current rate of interest lower. Nonetheless, the value motion has since cooled. Market members at the moment are watching each the ETF timeline and key assist zones to gauge the subsequent transfer.