Ripple Inverted Hammer Formation Indicates Bullish Alert: Analyst Shares Next Target For XRP
The Ripple (XRP) community is currently divided on the future price outlook for the digital asset, with conflicting signals emerging from recent price action and technical analysis.
While some analysts see bullish indicators that could propel XRP to new heights, others argue that the cryptocurrency is lagging behind the broader market and may be on the verge of setting new lows against Bitcoin.
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Inverted Hammer Formation Sparks Bullish Optimism
EGRAG Crypto, a prominent analyst, has identified a potentially bullish signal on XRP’s monthly time frame. According to their analysis, last month’s candle showed a 75% inverted hammer formation at the bottom, which is considered a strongly bullish indicator.
An inverted hammer is a candlestick pattern that occurs when the price of an asset drops significantly lower than its opening price but then rallies to close near the opening price. This pattern suggests that buyers are stepping in to support the price at lower levels, potentially setting the stage for a bullish reversal.
Based on this technical formation, EGRAG Crypto predicts that XRP could reach $0.75 in the near future, with July 2024 set to be a month of “fireworks” for the digital asset. If this bullish scenario plays out, it would represent a major increase from XRP’s current trading range and could reignite interest in the cryptocurrency among investors.
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Show more +Lagging Performance Raises Concerns
On the other hand, Jason Pizzino, another well-known analyst, has pointed out that XRP is showing signs of being a lagging cryptocurrency in the current Bitcoin bull market.
Pizzino notes that XRP is just 8% away from making a fresh 3-year low against Bitcoin, with the last such low occurring in April 2024. This observation suggests that XRP has been underperforming relative to Bitcoin and may be at risk of further downside.
Pizzino argues that at this stage of the market cycle, investors should be focusing on altcoins that are creating new highs against Bitcoin, rather than those that are struggling to keep pace. If XRP continues to lag behind the broader market, it could become increasingly difficult for the digital asset to attract new investors and generate significant price appreciation.
Also read: Binance Coin (BNB) Surges to New All-Time High, Poised for Price Discovery
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