XRP Could Form a Bullish Hammer on the Daily Chart if This Move Happens

Amid the latest market-wide dump that brought XRP to the $0.50 territory, crypto market analyst Crypto Wzrd is projecting the potential formation of a bullish hammer on the daily chart.

Yesterday saw a significant upheaval in the cryptocurrency market, with XRP caught in the crossfire. Bitcoin (BTC) collapsed to the $40,000 territory, while XRP slumped to briefly touch the October 2023 lows at $0.50. Both assets quickly recovered from these lows, but still maintained significant losses.

Despite the initial setback triggered by the market-wide collapse, Crypto Wzrd confirmed in his latest analysis that the XRP/BTC chart maintained resilience against the bears, recovering most of its decline, closing the day with a promising pin bar.

Crypto Wzrd expressed optimism about XRP’s potential for regaining control, noting that a sustained recovery could propel XRP to higher values. The analyst hinted at the crucial role of external factors in impeding this recovery, notably the looming threat of adverse news from the SEC regarding the ETF.

XRP Could Form a Bullish Hammer

He currently observes the daily XRP chart, which he believes has the potential to form a bullish hammer. However, this formation depends on the emergence of a bullish candle today, Jan. 4. 

Amid XRP’s slump to the $0.57 zone, the analyst believes if the token states a recovery from this territory, it could mark the breaking point of the daily lower high trendline. This, in turn, might drive XRP towards the $0.7300 threshold and beyond.

According to him, one key factor contributing to the positive outlook is the strength displayed by the XRP/BTC chart. This strength, as highlighted by Crypto Wzrd, compounds the optimistic view that XRP could engineer the bullish move. 

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However, the analyst cautioned that the ultimate trajectory of XRP depends on two critical elements: the direction that Bitcoin, the firstborn crypto, takes, and fundamental data that may surface in the coming days.

In anticipation of the upcoming move, Crypto Wzrd shifted his focus to the intraday chart. He noted the importance of waiting for clear directional cues from Bitcoin and monitoring fundamental developments. The analyst hinted at an inclination towards a scalp strategy, looking to profit on short-term movements.

XRP’s Increased Volatility

Zooming in on the intraday chart, Crypto Wzrd acknowledged the extreme volatility experienced yesterday, and predicted a continuation of this trend today. Despite the uncertainty, the analyst maintained an optimistic stance, expressing intent to enter another trade.

CasiTrades, another notable crypto analyst, also drew attention to XRP’s price movements, highlighting a robust support represented in a purple trendline on the 4-hour chart. She highlighted XRP’s journey toward the purple support, and a positive rebound off the Fib. 0.618 ($0.5338) and Fib. 0.65 ($0.5132) levels.

The analyst noted this as an opportune moment to procure XRP at different price levels. However, concerns arose as the breakdown point faced testing, marked by a strong break and a subsequent bounce that struggled to surpass the identified resistance.

Despite the robust break, CasiTrades expressed caution, hinting at the possibility of XRP revisiting the $0.43 bottom. She incorporated broader market trends, referencing Bitcoin’s unwavering support and hinting at a potential breakthrough, though acknowledging a prolonged anticipation of such a development.