Markets
Quarterly Hammer Candle Pattern Could Pressure Prices, Market Expert Says
EGRAG, a market expert, expects XRP to skyrocket to $8 or $27 amid the formation of a quarterly hammer candlestick pattern..
The analyst maintained his optimism around XRP despite continued bearish conditions. Notably, XRP also surrendered the $0.49 price zone to the bears following the current market turmoil that triggered a collapse below the psychologically important level. $0.50 Level earlier in the week.
However, these discouraging price movements have not affected EGRAG’s optimism, as the market analyst focuses on technical indices to assess XRP’s potential. This time, he drew attention to the XRP 3-month chart, highlighting the importance of a hammer candlestick pattern.
#XRP Quarterly Hammer – #Bullish Candle formation:
📈 #XRP over a 3 month period, 2 hammer candles were displayed before the major pumps:
1) April-June 2016
2) July-September 2017
🔥Right now, #XRP must close the next 3-month candle above $0.55 to $0.58 in the next 10 days to form… pic.twitter.com/7tQhN8BBnY– CRYPTO EGRAG (@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 non-existent upper shadow. This trend suggests that despite the selling pressure, buyers have stepped in to push prices higher, indicating a potential upward price movement.
XRP Hammer Candlestick Formations
According to EGRAG, XRP has only formed this hammer candlestick pattern twice in a 3-month period since its inception. The first case occurred between April and June 2016, while the second occurred between July and September 2017.
Interestingly, after the formation of each of the hammer candlesticks, XRP experienced a substantial increase in prices. After the 2016 candlestick, all-time high of $3.31 in January 2018.
EGRAG claims that XRP is about to form another hammer candlestick pattern within 3 months. For this to happen, 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 Hit $8 or $27
The market analyst asked investors to closely monitor XRP’s price movements as the month nears its 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 observed after the first hammer candle or after the second hammer candle. If XRP follows the path triggered by the first candle, EGRAG’s chart suggests its price will increase by 1,744% to $8.
However, if XRP follows the trajectory triggered by the second hammer, its price movements will register a 5,500% rise to $27. EGRAG pointed out that with this path, XRP would take longer to reach its ultimate goal. He predicted an increase to $1.3 followed by a retracement before a possible pump.
EGRAG previously projected that $27 target in an analysis three months ago, but the technical setup that then influenced this projection was a bullish crossover of the SMA. Meanwhile, XRP continues to trade below $1, now changing hands at $0.4887 amid a 0.51% decline over the past 24 hours.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
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