Drop to $2 Next or Breakout Brewing?

XRP drops to $2.40 as analysts track Wave 5 correction toward $2. ETF hopes and long-term structure still support a bullish setup.

XRP has fallen to $2.40 after a 5% drop over 24 hours and 8% decline over the past week. The recent pullback began from the $2.70 level, which analysts mark as the top of a correction phase.

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

Correction Nearing Key Support Zone

Analyst ChartNerd shared that the current drop aligns with the fifth wave of a larger correction, which started after XRP reached $2.70. Price action since then has followed a five-wave structure, with the final leg possibly ending near $2.00. The area just above this level, labeled as vertical accumulation support, has held during past pullbacks. ChartNerd added,

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

This suggests the broader trend has not been invalidated. The asset continues to trade within a rising channel, and support levels from previous cycles remain in place. A reversal near $2.00 could confirm the completion of this wave.

Meanwhile, XRP has now spent over a year trading above its 2021 highs and prior all-time high candle closes.

Short-Term Chart Points to Weakness

Separate analysis from Ali Martinez shows bearish movement in the short-term outlook. The 4-hour chart reveals XRP was rejected near $2.57 and has since slipped below $2.45. A lower high pattern is forming, with downward pressure from moving averages contributing to continued weakness.

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

— Ali (@ali_charts) November 2, 2025

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His chart outlines a projected move through lower support zones, possibly reaching $2.25 before any recovery. The structure points to a short-term downtrend, though longer-range support levels are still being respected.

ETF Expectations and Market Sentiment

As CryptoPotato recently reported, interest in a potential spot XRP ETF has grown in recent weeks. According to prediction markets like Polymarket, approval is widely expected, with current odds being at almost 100%. The conclusion of Ripple’s legal case with the SEC earlier this year removed a major barrier, clearing the way for possible regulatory progress.

XRP briefly moved above $2.65 following renewed optimism and broader market support from a recent interest rate cut. However, the price action has since cooled. Market participants are now watching both the ETF timeline and key support zones to gauge the next move.