• XRP correction phase remains incomplete with price eyeing a retest of $2.05 support.
• Bearish divergence in RSI suggests further downside before recovery toward $2.30–$2.36.
• Market reaction to Mastercard news triggered short-lived excitement before quick rejection.

XRP is trading at $2.22, struggling to maintain its footing after a sharp pullback from $2.41. The surge came shortly after news of a partnership involving Mastercard, which briefly ignited investor enthusiasm before fading just as quickly.

According to CasiTrades, the market’s reaction pushed XRP into the upper limit of its subwave 4 structure before prices sharply reversed, signaling that the correction phase is not yet complete.

Despite the momentary excitement, XRP failed to close above key levels, maintaining its structure from the earlier wave patterns. The rejection from $2.41 reinforced the view that the market still needs to test the lower boundary near $2.05. The retracement is consistent with Elliott Wave projections that expect a final dip before any meaningful recovery.

The brief rally showed strong resistance at the upper trend, with each candle close respecting the Wave 1 low. This technical behavior supports the case for one more downward move to complete the subwave 5 of Wave 3, potentially setting up a double-bottom formation.

XRP Key Support Levels Point to $2.05 Retest

CasiTrades pointed out that XRP’s pattern is still valid as long as the price is above the $2.05 level. A prospective fall may end the third major wave, only to witness a pullback towards the $2.30-2.36 region during Wave 4.

On Coinbase, XRP was just one cent away from this critical point and touched $2.06 before a slight recovery. But this minor recovery itself reveals that the market is still waiting for a verified bottom formation.

Market observation reveals that XRP is still inside its correction pattern, and a final dip may give more verification about completion before a rally phase again starts.

There is added strength from the RSI indicators, as bear divergences continue on the highs. It shows that buying is still weak, and a return to the $2.05 levels may occur as the RSI tests its lower trend line, indicating that the market may be getting ready for a direction change.

Resistance at $2.30 Remains Critical for Reversal

As market participants eagerly wonder what is about to happen on XRP, one resistance point that has become a determinant of whether there is more correction or a turnaround is at the price of $2.30. There are overlapping waves that identify this region as a site for Wave 4 formations.

To have a clear invalidation of any additional downside, XRP would have to close above $2.40. Until then, it is most likely that this market will be within a correction cycle. The typical trade that this market is experiencing is seen during a bottom formation, as a lack of buying power is causing compression, resulting in a new direction.

Also Read: Bullish Momentum: Could XRP Price Rally Toward $3 in November 2025?