XRP at Risk of $2.05 Retest as Bitcoin Slidesv
Analysts warn XRP could revisit $2.05 as Bitcoin gives back weekly gains. Explore key support levels, ETF flows, and what traders should watch next.
The crypto market is once again reminding traders how quickly sentiment can change. After an impressive run earlier in the year, Bitcoin has now given back most of its 2025 gains, sliding from an October peak above $126,000 to the low $90,000 range as ETF flows soften and macro conditions turn risk-off. This renewed Bitcoin correction is spilling over into altcoins, and XRP is firmly in the spotlight.
At the time of writing, Bitcoin is trading around the low $90,000s, while XRP hovers just above the psychologically important $2 region, with intraday lows already touching $2.06 according to live market data.
This positioning has sparked renewed fears that XRP is at risk of a $2.05 retest, a level that has acted as a pivotal support zone multiple times in 2025. Earlier this year, XRP briefly consolidated around $2.05 before bouncing higher, and several price analyses now treat this area as the line in the sand between a healthy pullback and a deeper crash.
In this article, we will break down why analysts are again warning about a potential XRP price correction, how Bitcoin’s latest downturn is shaping market sentiment, what the charts say about support and resistance, and what long-term investors and short-term traders alike should be watching next.
How Bitcoin’s Pullback is Pressuring XRP
Bitcoin remains the dominant force in crypto. When BTC rallies, liquidity and confidence typically spread to major altcoins. When it stumbles, risk appetite dries up, and altcoins often suffer outsized losses.
In recent weeks, Bitcoin has gone from a strong uptrend to a sharp reversal. After reaching record highs above $126,000 in October, BTC endured a heavy sell-off through November, at one point dropping toward $81,000 and effectively erasing its year-to-date gains. ETF outflows, macro uncertainty, and profit-taking from miners and early investors have all contributed.
This backdrop has created a fragile environment for altcoins. Crypto market volatility has surged, and traders are becoming more selective. For XRP, which had already been battling its own supply and technical headwinds, Bitcoin’s reversal removed an important tailwind. Without a strong BTC uptrend supporting risk sentiment, buyers are less willing to aggressively defend elevated XRP levels above $2.50 or $3.
Moreover, historical data shows that during broad market corrections, XRP tends to move in the same direction as Bitcoin, sometimes with even larger percentage swings. When BTC gives back gains in a short period, it often triggers a chain reaction in leveraged positions across altcoin futures markets. That can accelerate liquidations and deepen the drawdown in tokens like XRP, adding to the risk of a retest of key support levels such as $2.05.
Fundamentals: ETF Flows, Ripple Adoption and On-Chain Strength
Spot XRP ETFs and Institutional Interest
One of the most supportive developments for XRP this year has been the rise of spot XRP ETFs. After their mid-November launch, these products rapidly attracted close to $900 million in inflows in only a few weeks, putting them among the strongest altcoin ETF debuts on record.
This is a crucial part of the XRP price prediction puzzle. Persistent ETF inflows often signal that long-term, institutionally oriented capital is building exposure. That sort of demand tends to be less sensitive to short-term volatility and can provide a structural bid underneath the market, particularly near major support zones.
If XRP does revisit $2.05, the reaction from ETF flows will be a key test. Continued net inflows even as price dips would suggest that sophisticated investors see the move as an opportunity to add at a discount. Conversely, a slowdown or reversal in ETF flows could reinforce bearish narratives and make a deeper breakdown more likely.
Ripple’s Ecosystem Growth vs. Market Reality
Fundamentally, the Ripple ecosystem has continued to progress. Ripple has expanded partnerships with financial institutions, pursued cross-border payment solutions, and worked to position XRP as a bridge asset for global liquidity. Recent coverage notes that even though adoption and corporate moves are improving, the XRP price refuses to rise consistently, underscoring the disconnect between fundamentals and market pricing during risk-off periods. Yahoo Finance
This dislocation is not unique to XRP. Crypto markets often overshoot in both directions. In bull phases, prices can far exceed what fundamentals justify. In corrections, they can trade below fair value for extended periods. For traders, this means that even strong news about partnerships, regulatory clarity, or technological progress might not be enough to prevent a short-term XRP correction if macro and technical factors are aligned against the token.
On-Chain and Market Structure Factors
On-chain data and market structure also matter. Reports highlight elevated leverage across derivatives platforms, with some traders using extremely high margin ratios during the peak of the previous rally. When the market turns, this leverage can quickly unwind, leading to cascading liquidations that exaggerate price swings.
For XRP, the combination of high leverage, concentrated whale holdings and relatively thinner liquidity compared with Bitcoin means that sharp moves are always possible. A decisive break below $2.05 would likely trigger stop-loss orders and margin calls, potentially accelerating a drop toward deeper support and resistance zones.
Bitcoin’s Next Move: Rebound or Deeper Slide?
Because XRP often trades in Bitcoin’s shadow, understanding BTC’s trajectory is essential for any XRP investor. After the heavy November sell-off, several analyses now frame December as a turning point. Some argue that Bitcoin’s correction is reaching the later stages, citing historical patterns where significant drawdowns eventually produce strong recoveries within a couple of years.
Others are more cautious, pointing out that December’s historical returns are modest on average and not consistently bullish. In this view, the market may chop sideways, with BTC oscillating between key levels around $80,000 and $100,000 while traders reassess macro risks and ETF flows.
If Bitcoin stabilizes or stages a measured rebound, it could ease selling pressure on altcoins and help XRP hold the line at or above $2.05. A strong bounce in BTC, particularly if accompanied by renewed ETF inflows and improving sentiment, might even spark another XRP rally back toward previous highs.
However, if Bitcoin continues to “give back” gains and revisits lower support zones such as the low $80,000s, the odds of XRP breaking below $2.05 will rise significantly. In that scenario, risk assets across the board would likely face another wave of de-risking, and investors might prefer to wait for clearer signs of a bottom before stepping back into volatile altcoins.
Trading Scenarios: What a $2.05 Retest Could Look Like
Scenario 1: Successful Retest and Bounce
In an optimistic scenario, XRP dips down to the $2.05 region as selling pressure from Bitcoin’s pullback and whale distributions intensifies. The market briefly pierces or touches this level, triggering stop orders but also attracting a wave of fresh buyers who have been waiting on the sidelines. ETF inflows either remain stable or accelerate as institutions capitalize on lower prices.
Technically, this would look like a “wick” or short-lived move below support on the chart, followed by a solid recovery and daily close back above $2.10–$2.15. Momentum indicators would start to curl upward again, and trading volume would show clear signs of accumulation rather than panic. In such a case, analysts might treat the retest as a healthy reset, potentially paving the way for a new leg higher as long as Bitcoin cooperates.
Conclusion
XRP is standing at a crossroads just above one of its most important price levels of the past two years. As Bitcoin gives back weekly and even yearly gains, risk appetite across crypto has cooled, leaving XRP vulnerable to a possible retest of the $2.05 support. A combination of whale selling, softening momentum and elevated leverage all point to the real possibility of further downside pressure.
Yet the story is not one-sided. Strong spot XRP ETF inflows, steady progress in the Ripple ecosystem, and the potential for Bitcoin to stabilize or rebound all act as counterweights to the bearish case. History shows that XRP has bounced from this zone before, and long-term holders continue to view these corrections through a wider lens than day-to-day price swings.
For traders and investors, the key is not to fear a $2.05 retest but to understand what it represents. If the level holds and attracts fresh buyers, it could become the springboard for the next leg higher. If it breaks, it will likely mark the start of a deeper consolidation phase that tests conviction and risk management strategies.
In a market where conditions can change in hours, staying informed, flexible, and disciplined remains the best defense. XRP may be at risk of revisiting $2.05, but whether that becomes a breakdown or a launchpad will depend on how the interplay between Bitcoin, macro sentiment, and on-chain fundamentals evolves over the coming weeks.
Frequently Asked Questions
What does it mean that XRP is at risk of a $2.05 retest?
When analysts say XRP is at risk of a $2.05 retest, they mean the price could fall back to a key support zone near $2.05 that has previously halted declines and sparked rebounds. This level has been tested several times in recent years and is watched closely because it combines historical price reactions, psychological importance, and alignment with technical indicators. A retest is not automatically bearish; it can either confirm the strength of support if buyers step in, or signal weakness if price breaks below and stays there.
How is Bitcoin’s price influencing XRP right now?
Bitcoin’s sharp pullback from record highs to the low $90,000 area has damaged overall risk appetite in crypto, leading many traders to reduce exposure to altcoins like XRP.
Are XRP fundamentals still strong despite the correction risk?
Yes, many underlying fundamentals for XRP remain constructive even as the XRP price faces short-term pressure. Spot XRP ETFs have attracted hundreds of millions of dollars in inflows, indicating solid institutional interest and long-term accumulation.
What happens if XRP breaks below $2.05?
If XRP were to decisively break below $2.05 and close multiple days under that level, it would likely be interpreted as a bearish technical signal. Several analyses suggest that the next key zones to watch in that case would be around $1.96 and potentially as low as $1.61, where previous demand clusters and historical price reactions appear.
Is now a good time to buy or sell XRP?
Whether now is a good time to buy or sell XRP depends on your time horizon, risk tolerance, and strategy. Short-term traders may focus on how price behaves around the $2.05 support and use clear rules for entries and exits based on technical analysis and volatility.
