A top chartist observes an inverted harmer formation for XRP on the 2-month chart, projecting an imminent 950% price rally to the $5.5 territory.
Crypto analyst Egrag has identified the emergence of an inverted hammer formation on XRP’s 2-month chart. This pattern proves to be a reliable indicator of a substantial rally with strong historical precedence.
The analyst called attention to the pattern in his latest analysis of XRP’s price movements. According to Egrag, what’s truly exceptional is the steadfastness of XRP’s market structure over an impressive 426-day period.
#XRP: Anticipating Inverted Hammer Formation as 2-Month Candle Closes Tomorrow:
In just one day, the two-month candle for #XRP is set to conclude its pattern, displaying the potential configuration of an inverted hammer formation.
— EGRAG CRYPTO (@egragcrypto) August 30, 2023
In contrast to the volatility that often plagues the crypto market, XRP has demonstrated an unwavering foundation, bolstering investor confidence and hinting at the asset’s inherent stability. XRP has held above the Atlas line throughout this year.
The Inverted Hammer
Amid this market stability, XRP formed the bullish inverted hammer pattern with its price actions from July to August. Notably, the pattern’s formation stemmed from XRP’s sudden spike to $0.9380 on July 13 following the lawsuit victory.
An inverted hammer is a candlestick pattern where the price drops then recovers, signaling a possible trend reversal. It shows that buyers are stepping in after initial selling pressure.
The last time XRP witnessed an inverted hammer formation was in 2021. Following the formation of the pattern, the asset rallied in the next four months. This rally resulted in the reclamation of $1.9669 by April that year.
Now that XRP has formed another inverted hammer after two years, Egrag believes it could repeat the rally. Egrag underscores the $0.80 mark as a pivotal macro resistance level.
An Imminent 950% Rally
As the imminent candle takes shape, the analyst envisions an initial target in the $2.3 range. While this achievement would mark a significant advancement, it serves merely as a stepping stone.
According to Egrag, XRP could use the $2.3 territory as a launchpad to hit the next target of $3.3. The analyst’s ultimate target for this bullish run sits at $5.5. Hitting this point would signify a new all-time high for XRP.
The lofty $5.5 price threshold resides in a region on the charts that Egrag compares with the mythical Valhalla.
“The true pinnacle, akin to Valhalla, resides beyond the $5.5 threshold. Upon this achievement, dissenting voices and skeptics are aptly silenced.”
XRP is currently changing hands at $0.5238. A surge to $5.5 would require a 950% increase at this price.