XRP, Hedera Hashgraph (HBAR), and Avalanche (AVAX) Price Analysis as Market Sentiment Shifts

XRP, Hedera Hashgraph (HBAR), and Avalanche (AVAX) remain in focus as traders assess their recent price action and potential bullish setups.

Major cryptocurrencies XRP, Hedera Hashgraph (HBAR), and Avalanche (AVAX) are in traders’ sights as they evaluate their recent price movements and identify potential bullish or bearish setups.

XRP Forms a Bullish Hammer, Signaling Potential Rally

A recent weekly candlestick formation has put XRP in the spotlight. After dropping to $1.76 on Feb. 3, XRP closed the week with a hammer candlestick pattern, a technical formation that has historically preceded significant price surges.

As traders assess the broader market trend, XRP’s price action has sparked speculation of another rally. Following the market-wide decline that pushed Bitcoin below $100,000, XRP rebounded sharply, climbing above $2.

Crypto analyst Steph Is Crypto highlighted XRP’s previous experience of exponential gains after forming similar hammer patterns. In late 2013, a setup like this preceded a 2,000% price increase. Early in 2017, another hammer formation came before XRP’s rally to an all-time high above $3, which marked over 110,000% in gains.

XRP chart projecting $8 price. Source: Dark Defender

Moreover, analyst Dark Defender remains bullish on XRP’s Elliott Wave structure, suggesting the third wave of a five-wave pattern could propel XRP past $5.85, with a potential final target of $8 if the $3 resistance is breached and confirmed.

Despite a 3% daily price drop to $2.50, Dark Defender argues the correction is part of an ongoing uptrend. Another analyst, Tony Severino, suggests XRP could rally 35X to $20 based on previous Elliott Wave cycles, although such predictions are highly speculative.

HBAR Faces Bearish Sentiment Despite Bullish Forecasts

Hedera (HBAR) has been facing bearish pressure as the broader market struggles. At press time, the token is trading around $0.24, down 21.4% in the past week, reflecting the market’s bearish sentiment.

Hedera (HBAR) Tests Key Support After Recent Surge. Source: Merlijn/X

Crypto analyst Merlijn The Trader projects a short-term target of $0.3, citing strong momentum and a key resistance retest. Solberg Invest offers a more aggressive outlook, forecasting a potential rally to $0.9.

However, market indicators suggest mixed signals. HBAR’s long/short ratio is 0.98, indicating more traders are betting on a price decline than a rise. Historically, this ratio being below 1 reflects a bearish market stance.

Despite the bearish futures positioning, some analysts compare HBAR’s current price action to 2021, when it stabilized around $1.5 before skyrocketing to $5. Rekt Capital notes that HBAR’s Relative Strength Index (RSI) mirrors the overbought conditions seen in 2021, which preceded a rally to $5.

However, the possibility of history repeating is uncertain, given the current broader market downturn. Meanwhile, CryptoELITES has set a highly optimistic price target of $75 for HBAR, far exceeding other projections.

At press time, HBAR trades at $0.2442, down 3.8% on the day and 21.4% over the past week. The bearish futures positioning suggests further downside risk if market sentiment does not improve.

AVAX Faces Selling Pressure, But Oversold Conditions Hint at a Rebound

Avalanche (AVAX) continues to face strong selling pressure, with its price hovering around $27 after a 16.34% drop over the past week. The market cap has fallen to $11.16 billion, reinforcing the bearish trend. A falling channel pattern on the daily chart signals more downside unless buyers step in.

On-chain data shows daily active addresses have surpassed 250,000, the highest since May 2023. This suggests growing interest in the network. However, large investors remain cautious. Whales recently sold 10.08 million AVAX worth $272 million in just 48 hours, showing a lack of confidence in a near-term rebound.

AVAX needs to reclaim $28.62 to signal recovery, but a stronger push above $34.34 is required to confirm bullish momentum. If the token fails to hold current levels, further downside toward $22-$20 remains a possibility.

XRP shows potential for a rally, while HBAR faces bearish pressure despite bullish projections. AVAX remains under selling pressure but could see a rebound if oversold conditions attract buyers.