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EGRAG, a market expert, expects XRP to skyrocket to either $8 or $27 amid the formation of a quarterly hammer candlestick pattern.
The analyst has maintained his optimism around XRP despite the sustained bearish conditions. Notably, XRP has also relinquished the $0.49 price territory to the bears on the back of the ongoing market turbulence that triggered a collapse below the psychologically important $0.50 level earlier in the week.
However, these discouraging price movements have not impacted EGRAG’s optimistic view, as the market analyst focuses on technical clues to assess XRP’s potential. This time, he called attention to the XRP 3-month chart, noting the significance of a hammer candlestick pattern.
#XRP Quarterly Hammer – #Bullish Candle Formation:
📈 #XRP on the 3-month time frame has shown 2 Hammer Candles before major pumps:
1) April-June 2016
2) July-September 2017
🔥 Right now, #XRP needs to close the next 3-month candle above $0.55-$0.58 in the next 10 days to form… pic.twitter.com/7tQhN8BBnY— EGRAG CRYPTO (@egragcrypto) June 20, 2024
A hammer candlestick pattern is a bullish reversal pattern that occurs after a downtrend. It features a small body near the top of the trading range and a long lower shadow, with a small or nonexistent upper shadow. This pattern suggests that despite selling pressure, buyers stepped in to push prices back up, indicating potential upward price movement.
XRP’s Hammer Candlestick Formations
According to EGRAG, XRP has only formed this hammer candlestick pattern on the 3-month timeframe twice since its inception. The first instance was from April to June 2016, while the second occurrence came up from July to September 2017.
Interestingly, after the formation of each of the hammer candlesticks, XRP saw a substantial price increase. Following the 2016 candlestick, XRP spiked 5,550% from June 2016 to $0.39887 in April 2017. Similarly, after the 2017 hammer candlestick, XRP rallied 1,745% to the all-time high of $3.31 in January 2018.
EGRAG says XRP is on the verge of forming another hammer candlestick pattern in the 3-month timeframe. For this to occur, XRP must secure a close above the $0.55 to $0.58 range for the current 3-month candle. The current 3-month candle will close by the end of this month.
XRP Could Rise to $8 or $27
The market analyst has charged investors to closely monitor XRP’s price movements as the month inches closer to an end, as its closing price for this month could determine its direction for the rest of the year.
If XRP forms the hammer candlestick, it could either follow the trajectory witnessed after the first hammer candle or the second hammer candle. Should XRP take the path triggered by the first candle, EGRAG’s chart suggests its price will rise 1,744% to $8.
However, if XRP moves along the trajectory triggered by the second hammer, its price movements will record a 5,500% to $27. EGRAG emphasized that, with this path, XRP would take a longer time to reach its ultimate goal. He predicts a rise to $1.3 followed by a retracement before an eventual pump.
EGRAG previously projected this $27 target in an analysis three months back, but the technical setup that influenced this projection then was a bullish SMA cross. Meanwhile, XRP continues to trade below $1, now changing hands at $0.4887 amid a 0.51% drop over the last 24 hours.