Prominent market analyst EGRAG CRYPTO (@egragcrypto) has presented a bullish outlook for XRP, highlighting a technical indicator that could signal a significant price increase in the coming months. Despite the bearish trend that saw XRP fall below the crucial $0.50 level, the analyst focuses on a potential hammer candlestick forming on the 3-month chart.
Hammer candlesticks are technical indicators that signal a potential trend reversal after a price decline. They appear as a small body at the top of the trading range with a long lower shadow and little to no upper shadow.
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EGRAG CRYPTO’s analysis reveals that XRP has formed this hammer candlestick pattern twice. The first instance occurred from April to June 2016, followed by a substantial price increase of 5,550% from June 2016 to $0.39887 in April 2017. The second occurrence was from July to September 2017, leading to a 1,745% rally to an all-time high of $3.84 in January 2018.
Potential Price Trajectory
EGRAG CRYPTO suggests that XRP is currently on the cusp of forming another hammer candlestick on the 3-month chart. The key factor influencing this potential outcome hinges on XRP’s closing price for the current 3-month candle by the end of June. To solidify the hammer formation, XRP needs to close above the $0.55-$0.58 range.
EGRAG CRYPTO outlines two potential price trajectories for XRP depending on the formation or absence of the hammer candlestick pattern. If the hammer forms, XRP’s price movement could mirror the aftermath of the first or second historical hammer.
In the first scenario, based on EGRAG CRYPTO’s analysis, XRP could experience a 1,744% increase, reaching $8. He believes this pump will begin in July.
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The second scenario, aligned with the price movement after the 2017 hammer, suggests a more extended timeline for XRP to reach a higher target. In this case, XRP might experience a rise to $1.3 followed by a price correction before a potential surge to $27, marking a 5,500% increase.
Read Also: Top Chartist Gives Super Bullish Alert On XRP Inverted Hammer
Also, another analyst recently set the $27 for XRP, calling the digital asset a true gem. EGRAG CRYPTO acknowledges this path would likely take longer than the first scenario.
EGRAG’s analysis presents a potential bullish outlook for XRP. However, the digital asset has failed to sustain upward momentum, failing to recapture the $0.5 level multiple times.
However, the digital asset is trading at $0.4872, showing a 0.51% increase over the past 24 hours. If it can continue the momentum, it might reach the $0.55-$0.58 range in time for EGRAG CRYPTO’s predicted surge.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.
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