In his latest market analysis, prominent analyst Steph highlighted an intriguing development within the XRP market, which stands out despite the broader crypto market’s massive corrections. The bullish outlook comes as XRP forms a crucial technical pattern— the weekly hammer candlestick— signaling potential future price movements.
This is only the third time in #XRP’s history we’ve seen this weekly hammer candle.
— STEPH IS CRYPTO (@Steph_iscrypto) February 4, 2025
The last two led to 2,000%+ moves. pic.twitter.com/26biG4lRFl
Over the weekend, the cryptocurrency market experienced significant turmoil, driven by Bitcoin’s (BTC) drop below the psychological $100,000 threshold. As Bitcoin briefly retested the $91,000 mark on February 3, XRP mirrored this downfall, plummeting to $1.76 before swiftly rebounding. Despite the recovery, XRP has struggled to regain its previous $3 mark.
Market expert Dom weighed in on the price crash, pointing out that the rapid decline and rebound appeared unnatural, suggesting the possibility of market manipulation. However, a closer look at XRP’s price action reveals the formation of a hammer candlestick on the weekly chart, which is often seen as a bullish signal after a sharp drop.
A hammer candlestick is characterized by a long lower shadow and a small body, indicating that buyers regained control after a significant price drop. This week, XRP started at $2.579 but dipped to $1.76 before rebounding, forming the hammer candlestick.
Historically, previous hammer candlesticks in XRP’s weekly chart have triggered significant rallies. In late 2013, after a hammer formation, XRP surged by 2,128%, reaching an all-time high. Similarly, in January 2017, another hammer candlestick preceded a rally that saw XRP’s price skyrocket by over 110,000% by 2018.
Steph speculated that this latest hammer could lead to similar upsurges, with a potential 2,000% increase pushing XRP’s price to $52.50. While such a dramatic rise might be difficult given the current market conditions, even a 500% gain would lead XRP to a new all-time high of $15. With this technical setup, XRP traders are cautiously optimistic about the coin’s future price action.
Also Read: XRP’s Big Break: Institutional Giants Eye Spot ETF Approval in 2025
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
