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

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 $2.19Why ETF Flows Matter HereAccording 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 ) led Tuesday with $6.63 million, followed by Grayscale’s 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 ContextXRP 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 WatchXRP 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