EGRAG, a market expert, has high expectations for XRP, predicting that it will experience a significant increase in value. Despite the current bearish market conditions and XRP’s recent decline below $0.49, EGRAG remains optimistic about its potential. The analyst relies on technical analysis to assess XRP’s prospects and has identified a hammer candlestick pattern on the 3-month chart as a positive indicator.
A hammer candlestick pattern is a bullish reversal pattern that occurs after a downtrend. It is characterized by a small body near the top of the trading range and a long lower shadow, with little or no upper shadow. This pattern suggests that buyers are stepping in to push prices back up, indicating the possibility of upward price movement.
According to EGRAG, XRP has only formed this hammer candlestick pattern twice since its inception. The first instance occurred from April to June 2016, and the second occurred from July to September 2017. Interestingly, after each formation of the hammer candlestick, XRP experienced a significant price increase. Following the 2016 candlestick, XRP surged by 5,550% from June 2016 to $0.39887 in April 2017. Similarly, after the 2017 candlestick, XRP rallied by 1,745% to reach an all-time high of $3.31 in January 2018.
EGRAG believes that XRP is on the verge of forming another hammer candlestick pattern on the 3-month chart. To confirm this pattern, XRP must close above the $0.55 to $0.58 range for the current 3-month candle, which will end this month.
The market analyst urges investors to closely monitor XRP’s price movements as the month comes to a close, as the closing price for this month could determine its direction for the rest of the year. If XRP forms the hammer candlestick pattern, it could follow the trajectory seen after the first or second hammer candle. In the first scenario, EGRAG’s chart suggests that XRP’s price could rise by 1,744% to $8. In the second scenario, XRP’s price movements could record a 5,500% increase to $27. EGRAG notes that the second path would take a longer time to reach its ultimate goal, predicting a rise to $1.3 followed by a retracement before an eventual pump.
It is worth mentioning that EGRAG previously projected the $27 target in an analysis three months ago, but the technical setup that influenced this projection was a bullish SMA cross. Currently, XRP is trading below $1, with a value of $0.4887 and a 0.51% drop in the last 24 hours.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not responsible for any financial losses incurred.