XRP declined on Sunday as the digital currency continued to extend further into a key demand zone that played a crucial role in past cycles’ recovery patterns. Despite the decline, analysts say that the overall structure still points to a confirmed breakout pattern.
Analyst Crypto Patel highlighted on X that XRP is currently trading 60% below its all-time high of $3.66 but still maintains a positive trend on a higher time frame.
He further added that XRP has broken through a descending wedge pattern that resulted in a 600% move from the $0.60 breakout zone. He added that this is a key macro shift in XRP’s market structure.
Cryptocurrency is currently consolidating within a $1.00-$1.60 reaccumulation range that was established following a breakout. He expressed his bullishness on the coin as long as it remains above $1.00. He also noted that he prefers entering a trade at $0.80-$0.70 to pick up any potential sweep to further discount levels.
Source: X
He further added that token targets are $3.50, $5.00, $8.70, and $10+, but that a weekly close below $1.30 would invalidate the overall structure.
Crypto analyst BitGuru mentioned that XRP has fully unwound the consolidation. It is now entering a historical area of demand, where support has been strong in the past.
This is a crucial area, and the speed of the movement is slowing down, indicating that the market participants are analyzing the next move carefully.
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According to the analyst, this area represents a historical support level that has been strong in the past, and the reaction to it will determine whether the currency will continue its broader upward trend or retrace further.
Source: X
As of press time, XRP is trading at $1.58, down 3.36% in the last 24 hours, according to CoinMarketCap data on February 1. Over the last month, the coin price is down 16.95%.
The trading volume is up 34.59% to $5.93 billion, indicating that trading activity is expanding as the token approaches its long-term demand zone.
Source: CoinMarketCap
Analysts anticipate that the upcoming sessions will determine whether the token maintains the current levels or not.
Analysts are expecting a volatile period for the token as the price is close to the long-term support area. Traders are closely monitoring the $1.00 to $1.60 price range, anticipating a reaction from the coin price.
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