XRP recently slipped to $2.40, reflecting a 5% decrease in just 24 hours and an 8% decline over the week. The drop originated from the $2.70 peak, which analysts identified as part of a correction phase.

As XRP nears significant support levels, short-term pressure persists, yet overarching patterns indicate a potential bullish reversal.

Approaching Key Support

Analyst ChartNerd highlighted that this dip corresponds with the fifth wave of a broader correction that commenced when XRP hit $2.70. He noted that the asset’s trajectory aligns with a five-wave structure, potentially culminating around $2.00. This area above constitutes significant accumulation support from previous patterns. “Possible wick to $2 is plausible,” he stated, emphasizing that no major structure has been invalidated.

This suggests that the general trend remains intact. The price continues to operate within a rising channel, maintaining previous cycle support levels. A rebound near $2.00 might signal the end of this correction.

Source: ChartNerd/X

In parallel, XRP has been positioned above its 2021 highs for over a year.

Warning Signals in the Short Term

In contrast, the outlook painted by Ali indicates bearish trends in the near-term. Analysis from the 4-hour chart reveals a rejection around $2.57, with prices subsequently dipping below $2.45. This implies a worsening trend, compounded by downward pressure from moving averages. Ali tweeted, "$XRP shows signs of weakness. A retest of $2.25 might be next!"

ETF Anticipation and Market Mood

Recent findings suggest growing interest in a potential XRP ETF. Predictions from markets like Polymarket indicate nearly a 100% chance of approval, especially following the resolution of Ripple’s legal wrangling with the SEC earlier in the year.

While XRP briefly surged past $2.65 due to renewed optimism, the momentum has since cooled. Market observers are now evaluating both ETF developments and vital support zones for forthcoming price movements.