XRP Chart Forms Weekly Inverted Hammer, Is This the Bottom?

Reversal signals often appear quietly, yet they can reshape market expectations within days. Traders watching higher timeframes understand that a single weekly candle can shift sentiment.

When a clear trend signal forms after sustained selling, market participants begin to ask whether the decline is losing strength. XRP now sits in that exact moment as traders examine one of the strongest single-candle reversal patterns.

Egrag Crypto’s Observation

Egrag Crypto highlighted a weekly inverted hammer forming near $1.94 on the XRP chart. He emphasized that the pattern appears after a multi-week decline.

This timing matters because inverted hammers carry greater weight when they emerge at the end of a downtrend. His analysis examines whether this candle signals seller exhaustion and renewed buyer activity.

Understanding the Inverted Hammer

An inverted hammer forms when buyers push the price upward during the candle’s formation. The long upper wick shows that bulls attempted a strong recovery. The small body near the lows shows that sellers lost momentum but still pushed the price back toward support.

When this pattern appears on a weekly timeframe, it reflects a potential shift in long-term sentiment. Traders view it as an early sign of a possible bottom.

Assessing the Probability of a Bottom

Egrag assigns a 40 percent chance that this candle marks a local bottom. He gives a 35 percent chance that the price dips once more before bottoming. He assigns a 25 percent chance that the pattern fails and the downtrend continues.

These ranges show the candle’s strength/weakness, its placement in the trend, and nearby resistance levels. The signal is encouraging, but it remains incomplete without confirmation.

The Importance of Confirmation

A reversal signal gains strength only when the market produces follow-through. Confirmation requires a strong green weekly close after the inverted hammer. It also requires a higher low that proves sellers have lost control.

A break above the $2.10 to $2.20 region would strengthen the bullish case. A move above $2.30 would confirm clear momentum. Until these conditions appear, the pattern represents an attempt at bottoming, not a verified reversal.

What This Means for XRP’s Macro Trend

If confirmation arrives, the next macro leg could begin forming from this region. Weekly reversal patterns often precede multi-month advances when supported by strong volume. However, failure to confirm could reopen the door to deeper retracements. Traders must watch price behavior near resistance levels because those levels will determine the strength of any new trend.

In conclusion, the inverted hammer at $1.94 sends a hopeful signal, but the market still requires proof. Egrag Crypto’s probabilities reflect a balanced and realistic assessment of current conditions.

XRP now stands at a technical crossroads where buyers must confirm their intent. If they succeed, the long-awaited macro reversal could begin. If they fail, the downtrend may extend before forming a durable bottom.