Jakarta, Pintu News – After a sharp decline that made many market participants nervous, Ripple (XRP) has actually created a technical pattern that is considered not to close the opportunity for further rallies. A number of analysts consider the latest movement to be more like a liquidity clearing phase rather than the end of the cycle.
On the monthly time frame, certain price areas are back in the limelight as they triggered major reversals in the previous period. This is where the $7 target narrative strengthened again, despite the deterioration in market sentiment.
Egrag Crypto analysts highlighted that on the monthly chart, Ripple (XRP) briefly tested the crucial support area around $1.60-$1.61. The lowest point of the decline even touched the $1.50 range before the price rallied back. Importantly, the month’s close remained above $1.60 so the support structure has not collapsed.
Early February also opened around $1.66, signaling that buying interest is still active in the zone. The $1.60-$1.61 area is considered not just a psychological number, but a historical node that has been a turning point in previous cycles.
When prices fall rapidly and then recover quickly, the pattern is often read as a liquidity grab. In this phase, the market usually “shakes out” weak positions so that stop-losses are swept away before the main direction continues. In other words, a short drop can serve as a warm-up before a bigger move.
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Based on historical trajectories, there are two scenarios that often arise after similar configurations. The first scenario is a short-term bounce followed by a drop once again to test lower levels. Once that retest is complete, the price usually builds a stronger and more structured upside impulse.
This pattern often makes the market look hesitant in the beginning, but then moves aggressively when the supply of sellers dwindles. The second scenario is that Ripple (XRP) immediately resumes its rise without the need for additional declines. In some cycles, the market chooses this path when buyers are already quite dominant in the support area and sellers are losing steam.
Interestingly, big rallies in the past did not always wait for “neat” and uniform bull market conditions. Even when other crypto markets like Bitcoin (BTC) and Ethereum (ETH) were moving erratically, Ripple (XRP) once recorded a sharp spike due to its own technical structure.
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A monthly close below $1.60 could indeed signal a weakening of the broader trend. However, the history of Ripple’s (XRP) movement shows that the most explosive rallies are often born during correction phases or bearish moods. During such periods, the market is often filled with indecision, volumes change dramatically, and volatility increases. The combination can create ideal conditions for a quick recovery when the selling pressure starts to wear off.
The $7 target is explained through a structure mapping approach, rather than mere optimism. If Ripple (XRP) is able to maintain key structural levels and replicate a pattern similar to the 2021 cycle, a projected recovery of around 340% becomes the basis of calculation towards the $7 area.
Such moves often start when market confidence is at a low point, so the initial bounce is often not trusted. As such, the main focus of analysts is on validating monthly levels and price responses to support zones, rather than on the daily sentiment narrative.
Ripple’s (XRP) latest drop doesn’t automatically mark the end of the cycle, especially if the monthly close remains above $1.60. The liquidity-taking pattern, two continuation scenario paths, as well as the track record of rallying during correction phases are why the $7 target is still considered relevant.
While risks remain, a reading of the long-term structure provides more context than momentary fluctuations. Ultimately, the next direction will be largely determined by the price’s ability to hold the key zone and build momentum from the support area.
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