XRP’s Hammer Time: Can Ripple’s DEX Launch Spark the Next Altcoin Rebound?

The crypto market is a masterclass in emotional whiplash. Just last week, traders were debating whether Bitcoin’s relentless rally would ever pause. Now, as of February 7, 2026, the mood is distinctly risk-off, with $BTC having sliced from $84,000 to nearly $60,000 in a matter of days. Yet, while the headlines scream about carnage and ETF outflows, something quietly interesting is brewing in the altcoin trenches, specifically, with XRP.

Ripple’s XRP has spent most of 2026 being the butt of every crypto joke, a perennial underperformer with more legal baggage than a class-action law firm. But even in the middle of a broad-based selloff, XRP is flashing a technical pattern that’s hard to ignore: a giant hammer candle. For traders who still believe in technical analysis (or at least pretend to for the sake of plausible deniability), this is the sort of setup that makes you pause your doomscrolling and actually open a chart.

Let’s set the stage. The broader crypto market has been in freefall, with Bitcoin’s ETF narrative unraveling as spot flows turn negative and Gemini slashes headcount. Corporate treasuries are bleeding, and the “sell at any price” mentality is back in fashion. Yet, in the middle of this, XRP is forming a textbook hammer candle on the daily chart, just as Ripple prepares to launch its much-hyped permissioned DEX. It’s the kind of technical-meets-fundamental convergence that usually gets buried under the avalanche of macro noise, unless you’re paying attention.

According to crypto.news and zycrypto.com, XRP’s price action is showing resilience, with the hammer candle suggesting an eventual rebound. EGRAG CRYPTO, a market analyst with a penchant for logarithmic channels and bold price targets, is calling for a countdown to $4.50. Ripple’s CEO is even quoting Buffett’s “Be greedy when others are fearful,” which is usually a sign that the PR team is running out of ideas, but sometimes, just sometimes, it marks a bottom.

The DEX launch is not just a marketing event. It’s Ripple’s attempt to pivot from regulatory punching bag to DeFi contender. The permissioned angle is a nod to institutional adoption, think KYC-compliant swaps, not wild-west meme coin farms. In a market where the SEC is still lurking and compliance is the new alpha, this is a narrative that could stick, especially if the DEX gains traction with banks and fintechs who want on-chain exposure without the regulatory migraines.

Zooming out, XRP’s technicals are lining up with a classic reversal setup. The hammer candle, forming after a multi-week slide, is a signal that sellers are running out of steam. The wick shows aggressive buying off the lows, and if Ripple’s DEX launch delivers even a fraction of the hype, the setup for a squeeze is real. Historically, XRP has been a laggard in bull markets, but it also has a habit of ripping faces off shorts when sentiment flips. The last time XRP formed a similar pattern, it rallied +70% in two weeks. Of course, past performance is no guarantee of anything except more volatility.

On-chain data is also hinting at a shift. While Bitcoin’s metrics look like a horror show, exchange inflows up, whale wallets dumping, ETF outflows accelerating, XRP’s on-chain activity is showing signs of accumulation. Wallets holding >10,000 XRP have grown by 3% in the past week, and active addresses are ticking up ahead of the DEX launch. It’s not exactly a stampede, but in a market where everyone is running for the exits, even a trickle of smart money is worth watching.

Strykr Watch

For the technical crowd, the levels are clear. Immediate support sits at $0.48, with the hammer candle’s low acting as the line in the sand. Resistance is stacked at $0.58, the neckline of the recent breakdown and a magnet for stop orders. The 50-day moving average is flatlining at $0.54, and RSI is bouncing off oversold territory at 31. If XRP can close above $0.54 on volume, the squeeze to $0.65 is on the table. Below $0.48, the bull thesis is dead, and it’s back to meme coin purgatory.

The DEX launch is the wild card. If initial volumes are strong and institutions show up, expect a fast move through resistance. If it’s a flop, or if the SEC decides to crash the party, all bets are off. But with the broader market still shell-shocked, XRP is one of the few majors with a clear event catalyst and a technical setup that isn’t already crowded.

The risk, of course, is that XRP’s reputation for false dawns is well-earned. Every rally in the past two years has been sold into by bagholders desperate to exit. But the combination of a technical reversal, on-chain accumulation, and a tangible product launch is rare enough to warrant a closer look.

For traders, the play is straightforward. Long on a confirmed break above $0.54, with a stop at $0.48 and a target at $0.65. If you’re feeling brave, the $0.72 level is the next logical extension. For the risk-averse, wait for the DEX launch metrics, if volumes are underwhelming, step aside. If the market shrugs off the launch, XRP will go back to sleep.

Strykr Take

This is one of those setups where the risk-reward finally looks asymmetric. The market hates XRP, the news cycle is apocalyptic, and yet the technicals are screaming for a reversal. If Ripple’s DEX launch delivers, this could be the start of a proper altcoin rotation. If not, at least you get to say you traded the hammer candle that everyone ignored. Strykr Pulse 63/100. The threat level is real, but so is the opportunity. Threat Level 3/5.