---
title: "XRP's 20% Pullback Hits Critical Support: Is $2 Still in Play?"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/297790059.md"
description: "XRP dropped 20% from its August high, testing the critical $1.31-$1.38 support zone. Analyst Ali Martinez identifies this area as a major demand zone; an hourly close above $1.38 could confirm a breakout toward $2. Meanwhile, U.S. spot XRP ETFs recorded their 11th consecutive day of net inflows, totaling $14.38 million on Tuesday. Despite the pullback following a 71.8% rally, continued ETF accumulation is viewed as a constructive sign for the technical setup."
datetime: "2026-09-02T12:47:29.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/297790059.md)
  - [en](https://longbridge.com/en/news/297790059.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/297790059.md)
generator: "portal-rs"
---

# XRP's 20% Pullback Hits Critical Support: Is $2 Still in Play?

**XRP** (CRYPTO: XRP) is down 20% from its August high of $1.70, with one analyst outlining a cruicial zone as the level that determines whether $2 stays in play.

Ali Martinez posted a five-part thread on X Tuesday, laying out the bull case for XRP despite the pullback. 

More than 4.8 billion XRP were previously acquired between $1.31 and $1.38, making it one of the heaviest demand zones on the chart. 

On the hourly timeframe, XRP is forming a bullish flag pattern with support at that same zone. An hourly close above $1.38 confirms the breakout and puts $2 back in focus.

The resistance levels to clear on the way up stack as follows:

-   $1.60 — nearly 2 billion XRP changed hands here previously
-   $1.68 — another 1.98 billion XRP traded at this level
-   $1.86 — 3.47 billion XRP traded, breakout above opens path to $2.19

### Why ETF Flows Matter Here

According to SoSoValue, U.S. spot XRP ETFs logged their 11th consecutive session of net inflows Tuesday, pulling in $14.38 million on the day and roughly $170 million across the streak that began August 18. 

Cumulative net inflows since launch now stand at $1.68 billion with total net assets at $1.44 billion. 

Franklin Templeton’s **XRPZ** (NYSE:XRPZ) led Tuesday with $6.63 million, followed by Grayscale’s **GXRP** (NYSE:GXRP) with $4.72 million and Canary’s **XRPC** (NASDAQ:XRPC) with $3.03 million.

Ali Martinez noted that ETF accumulation has not yet fully translated into price strength, but called the continued buying during a 20% pullback a constructive sign for the technical setup.

### Why the Pullback Is Normal in Context

XRP rallied 71.8% from $0.988 to $1.70 during August before entering the current correction. 

A 20% pullback after a 70% move is historically normal and keeps the broader trend intact as long as the $1.31 to $1.38 support holds. 

**Goldman Sachs**, Jane Street, and Millennium Management rank among the largest institutional holders of spot XRP ETFs based on Q2 13F filings, as Benzinga reported Tuesday.

### XRP Price Prediction: Key Levels to Watch

XRP compresses into the apex of a descending triangle at $1.32, with the flat support near $1.30 and the 20-day EMA at $1.31 both being tested simultaneously.

Key support levels for XRP if $1.31 breaks:

-   $1.24 to $1.28 — Bull Market Support Band, deeper cushion below

 **Read Also: Bitcoin Is 'Not Exactly Gold' but That's a Good Thing, Bitwise Exec Says** 

*Image: Shutterstock*

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**