XRP has posted its third-ever weekly hammer candlestick, a pattern historically followed by massive price surges.
According to market analyst Steph, the two previous formations of this pattern led to price increases of over 2,000%.
The Weekly Hammer Formation
XRP recently experienced a sharp decline alongside the broader crypto market, which collapsed over the weekend.
Bitcoin (BTC) slumped below the $100,000 mark, dragging other cryptocurrencies, including XRP, down with it. XRP dropped to as low as $1.76 on February 3 but quickly rebounded, rising above $2.
This sharp drop and quick recovery led to the formation of a hammer candlestick on the weekly chart.
A hammer candle is characterized by a long lower shadow and a small body, indicating that buyers regained control of the market after a steep drop.
Historical Performance of the Hammer Pattern
Steph highlighted that this is the third time in XRP’s history that the weekly hammer pattern has appeared. In the past, these formations led to significant price rallies.
The first occurred in late 2013, after which XRP surged by 2,128%, reaching an all-time high of $0.0614.
The second hammer appeared in January 2017, after which XRP experienced a massive 110,085% rally, pushing the price to over $3 by January 2018.
Could XRP See Another 2,000% Surge?
Given the historical performance of this pattern, Steph suggests that XRP could see a similar upside, with the price potentially climbing to a new all-time high of $52.50, a 2,000% increase from the current price of around $2.50.
However, considering XRP’s current market position and the possibility of diminishing returns, a more conservative estimate could be a 500% rally, which would push the price to around $15.
While these predictions are speculative, the appearance of the hammer candlestick has certainly drawn attention to XRP, with many watching closely to see if history repeats itself.
