XRP Drops 8% as Analysts Eye $2 Support Level

XRP has experienced significant price deterioration, dropping 5% over 24 hours and 8% over the past week from its recent peak of $2.70. According to analysis from ChartNerd, this decline represents the fifth wave of a larger correction pattern that began when XRP reached the $2.70 level. The price action since that high has followed a distinct five-wave structure, with the current downward movement potentially representing the final leg of this corrective phase.

ChartNerd’s analysis points to the $2.00 level as a critical support zone, noting that the area just above this price has served as “vertical accumulation support” during previous pullbacks. The analyst specifically mentioned that a “possible wick to $2” could occur, while emphasizing that “no macro structure has been lost.” This indicates that despite the current weakness, XRP continues to trade within a rising channel with broader support levels from previous cycles remaining intact. A reversal near the $2.00 level would confirm the completion of this corrective wave and potentially set the stage for renewed upward momentum.

Separate analysis from Ali Martinez reveals bearish momentum in XRP’s short-term outlook. The 4-hour chart shows XRP was rejected near $2.57 and has since slipped below $2.45, forming a lower high pattern that suggests continued downward pressure. Moving averages are contributing to this weakness, creating headwinds for any immediate recovery attempts.

Ali Martinez’s chart analysis projects further downside movement through lower support zones, with a potential retest of $2.25 before any meaningful recovery can occur. This short-term bearish structure contrasts with the broader market picture but aligns with the current corrective phase identified by ChartNerd. The convergence of these analytical perspectives creates a clear narrative: while longer-range support levels are being respected, short-term pressure is likely to persist until key support zones are tested.

Despite the current technical weakness, market sentiment remains buoyed by expectations of a potential spot XRP ETF. According to prediction markets like Polymarket, approval odds sit at nearly 100%, reflecting widespread market confidence in regulatory progress. This optimism follows the resolution of Ripple’s legal case with the SEC earlier this year, which removed a major barrier that had previously hindered XRP’s regulatory prospects.

The combination of technical support levels and regulatory developments creates a critical juncture for XRP’s next directional move. As reported by CryptoPotato, XRP briefly moved above $2.65 following renewed optimism and broader market support from a recent interest rate cut, though the price action has since cooled. Market participants are now closely monitoring both the ETF timeline and key technical support zones to gauge whether the current correction represents a buying opportunity or the beginning of a more sustained downturn.

The broader context remains supportive for XRP, which has now spent over a year trading above its 2021 highs and prior all-time high candle closes. This sustained performance above historical resistance levels, combined with the resolution of regulatory uncertainty and potential ETF approval, suggests that the current correction may represent a healthy consolidation within a larger bullish structure rather than a fundamental shift in market dynamics.