XRP at a Crossroads: Dropping to $2, Next or Breakout Brewing?

XRP falls to $2.40 as analysts monitor the Wave 5 correction towards $2. Expectations and the long-term structure of ETFs still support a bullish stance.

As the asset approaches key support zones, short-term pressure remains while longer-term patterns remain intact.

Correction approaching key support zone

Analyst ChartNerd said the current decline joins the fifth wave of a larger correction, which began after XRP reached $2.70. The price action has since followed a five-wave structure, with the final leg potentially ending around $2.00. The area just above this level, referred to as vertical accumulation support, has held during previous pullbacks. ChartNerd added,

“Possible price increase to $2 possible,” also noting that “no macro structure has been lost.”

This suggests that the broader trend has not been refuted. Assets continue to trade in a rising channel and support levels from previous cycles are maintained. A reversal near $2.00 could confirm the completion of this wave.

Meanwhile, XRP is now trading above the 2021 highs for over a year, closing the all-time previous candle.

Short-term chart indicates weakness

Separate analysis from Ali Martinez shows a bearish move in the short-term outlook. The 4-hour chart shows that XRP was rejected around $2.57 and has since fallen below $2.45. A lower high pattern forms, with downward pressure from moving averages contributing to continued weakness.

$XRP show signs of weakness. A $2.25 retest could be next! pic.twitter.com/RMYX15hbRt

— Ali (@ali_charts) November 2, 2025

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His chart outlines an expected move through the lower support zones, possibly reaching $2.25 before any recovery occurs. The structure indicates a short-term downward trend, although longer-term support levels are still respected.

ETF expectations and market sentiment

As CryptoPotato recently reported, interest in a potential XRP ETF has increased in recent weeks. According to prediction markets like Polymarket, widespread approval is expected, with current odds near 100%. The conclusion of Ripple’s lawsuit with the SEC earlier this year removed a major barrier and paved the way for potential regulatory progress.

XRP briefly rose above $2.65 on renewed optimism and broader market support from a recent rate cut. Since then, however, the price action has cooled. Market participants are now watching both the ETF timeline and key support zones to gauge the next move.