XRP has recently formed a candlestick pattern that indicates a potential bullish reversal. The asset has been in a nosedive state for the past several weeks, experiencing a decline of over 20% since its peak in mid-July.
New Leg Up?
The technical term spinning bottom occurs when the underlying asset’s price goes through wide swings in both directions but ultimately closes near its opening level. The presence of long upper and lower wicks suggests that both bulls and bears have been active, yet neither side has managed to gain a decisive advantage.
In scenarios where this setup emerges following a steep decline and close to a pivotal support level, it is often regarded as a bullish indication, implying that bears may be losing momentum. XRP’s performance over the past month and a half has exemplified this, as the asset plummeted from its all-time high (ATH) of $3.65 in mid-July to a recent low of $2.70.
It’s essential to note that, like all technical indicators, the spinning bottom does not guarantee a reversal. However, it is typically viewed as an early indicator of a potential shift. Analysts generally await a green candle closing above the pattern’s high for confirmation of this reversal.
Further Bullish Indicators
XRP’s price movements consistently attract considerable attention within the cryptocurrency community due to the extensive reach of Ripple’s network. Consequently, the asset often becomes the subject of varied price predictions, some of which can be quite ambitious. Among the more restrained forecasts are those suggesting XRP could soar to $6 as it continues to consolidate above a key bullish setup.
Another analyst has outlined the necessary steps for the token to recover from its current downturn and reach a new all-time high above $3.65. The initial phase has been defended for now, and the next objective is to surpass the $2.90 resistance level.
Furthermore, prominent analyst Ali Martinez has referenced the widely-used TD Sequential indicator, which has signaled “back-to-back buy signals” for XRP. Based on this analysis, he has concluded that a “rebound setup is in play.”
TD Sequential flashes back-to-back buy signals on $XRP. Rebound setup in play! pic.twitter.com/nN8q4TD27c
— Ali (@ali_charts) September 1, 2025
The full analysis on XRP’s potential for a bullish reversal can be found in the article Ripple Forms Spinning Bottom Pattern: What Does it Mean for XRP’s Price? on CryptoPotato.
