XRP has recently formed a hammer candlestick pattern on its weekly chart, a bullish signal that has market analysts anticipating a potential surge reminiscent of its 110,233% rally in 2017. Notably, the well-known crypto analyst Dark Defender highlighted this formation, drawing parallels to a similar pattern that preceded XRP’s historic rise.
Hammer Candlestick Formation on XRP’s Weekly Chart
The hammer candlestick pattern, known for its small body and long lower shadow, is a bullish reversal indicator often appearing after a downtrend. It suggests that despite intense selling pressure, buyers are stepping in, potentially reversing the price decline. XRP experienced such a pattern in early August, after facing significant bearish pressure following its late July price spike to $0.6580. The downward trend was largely attributed to sell-offs in the broader crypto market amid escalating geopolitical risks.
XRP 2017 Weekly Hammer Candlestick
Dark Defender, in his analysis, referenced historical data to bolster his prediction. He pointed to a similar hammer formation in 2017 that led to XRP’s meteoric rise. According to him, a hammer pattern appeared on XRP’s weekly chart in March 2017, just weeks before the digital asset embarked on a massive upward trajectory. However, further investigation revealed that this pattern actually formed in January 2017, when XRP dropped to a low of $0.00300 before recovering, marking the beginning of its legendary bull run.
Potential for Another XRP Rally
In 2017, after forming the hammer pattern, XRP continued to decline for four more weeks before staging a remarkable recovery. By January 2018, XRP had soared to an all-time high of $3.31, representing a staggering 110,233% increase from its January 2017 low. Dark Defender’s analysis hints at the possibility of a similar uptrend in the current cycle, although the scale of the rally remains speculative.
XRP 1W Chart
Recent developments have further bolstered XRP’s outlook. The asset surged by over 30% within 24 hours following the resolution of its legal case with the SEC, effectively erasing the previous week’s losses and boosting its price to $0.6046. This recovery, coupled with a spike in the Relative Strength Index (RSI), adds weight to the predictions of a significant upcoming rally for XRP.
