Ripple's (XRP) dropped to its lowest level since November 2024 on Saturday, briefly touching $1.50 before recovering to trade above $1.60 amid a broader cryptocurrency market selloff that pushed all major digital assets into the red.
What Happened: XRP Hits 14-Month Low
The token's decline came as part of widespread bearish pressure across cryptocurrency markets.
XRP has since rebounded slightly from its low point. It currently trades above $1.60.
Technical analyst CryptoWZRD, who has more than 100,000 followers on X, noted the token closed bearish against the dollar but identified a potential bullish signal in its Bitcoin (BTC) pairing. The XRP/BTC pair closed with a "dragonfly doji," a candlestick pattern generally considered bullish.
"My focus will be on the lower time frame chart," CryptoWZRD wrote on Feb. 1. "During the Monthly transition, we should see more volatility led by Bitcoin."
Also Read: Russia-Linked Activity Fuels Five-Year High In Illicit Crypto
Why It Matters: Analysts See Multiple Paths Forward
Analyst EGRAG CRYPTO characterized Saturday's sharp decline as a possible liquidity grab that could trigger an immediate bounce.
The analyst also outlined a less optimistic scenario: a dead-cat bounce followed by another retracement representing a second liquidity grab. However, if historical patterns repeat, EGRAG CRYPTO projects a potential rally of up to 1,600% in the coming months, similar to price action seen after a comparable structure formed during the 2017 cycle.
"It held the close above $1.60, swept liquidity near $1.64, and opened February at $1.66," EGRAG CRYPTO noted. Such a rally would push XRP into double-digit price territory.