XRP Prints Its Third Weekly Hammer Ever, Signaling a Potential 2,000%+ Upside

XRP has posted its third weekly hammer formation in history, with the two previous instances leading to 2,000%+ price surges.

Notable market analyst Steph called attention to the latest development in his most recent analysis. Interestingly, the bullish commentary comes on the back of a concerning phase in the broader crypto market, as prices witness massive corrections.

XRP Forms Weekly Hammer Candlestick

For context, the broader crypto market collapsed over the weekend, triggered by Bitcoin’s (BTC) slump below the $100,000 psychological mark. As BTC retested $91,000 on Monday, Feb. 3, XRP observed a comparable crash, dropping to a low of $1.76 on the same day before quickly rebounding.

Despite a quick recovery above $2, XRP has failed to reclaim the $3 mark. Most recently, market analyst and order book expert Dom presented evidence that XRP’s sudden crash to $1.76 and swift recovery was not particularly natural. He mentioned this at a time when several analysts pointed to market manipulation across the board.

However, in an interesting twist, it appears this crash to $1.76 and the immediate rebound led to the formation of a hammer candle on the XRP weekly chart. Data from the chart shows that XRP began this week with a price of $2.579 amid the weekend correction.

Nonetheless, the sudden drop to $1.76 triggered a massive wick down, with the quick rebound push eventually leading to the hammer candle formation. For context, a hammer candle features a long lower shadow and smaller body, which suggests that buyers regained control of the market after a massive drop.

Previous Hammers Triggered 2,000%+ Rallies

According to Steph’s disclosure, this current hammer candlestick is the third one XRP has witnessed on the weekly timeframe throughout its history. Interestingly, the last two times the structure formed, XRP saw massive gains shortly after.

Particularly, XRP first observed this candlestick in late 2013. Following its formation, the price recovered from a downtrend, soaring 2,128% to a new all-time high of $0.0614. 

Meanwhile, the second time this weekly hammer candle formed was in January 2017. Following this structure, XRP saw steeper declines before eventually recovering. However, upon this recovery, prices skyrocketed, rallying by a massive 110,085% to the all-time high above $3 by January 2018.

Steph’s disclosure implied that the latest hammer structure could lead to upsurges similar to what the market witnessed during previous ones. With the past ones leading to rallies of at least 2,000%, a comparative increase from the current price of $2.5 would lead to $52.5, a new all-time high for XRP.

However, this might not be particularly feasible, especially considering XRP’s current market position and the concept of diminishing returns. Nonetheless, even a quarter of this increase, translating to 500%, would lead to a new all-time high of $15.