XRP traders eye rally to new all-time highs at $5.85 as key support holds

XRP’s (XRP) price is trading 28% above its $1.94 lows reached on Feb. 28, up 6.5% over the last 24 hours. Traders keep rally hopes alive as the altcoin holds above a key support level.  

Elliott Wave analysis projects XRP price to $5.85

Dark Defender, a crypto market analyst, highlighted that XRP was trading above a key support zone in the four-hour timeframe, as shown in the chart below.

Note that this level represents the 38.2% Fibonacci retracement of the November rally to seven-year highs of $3.40. Dark Defender believes this marked the “Wave 2 bottom”  and “we are waiting for XRP to move toward $2.60.”

According to the analyst, the key levels to watch on the downside are $2.33 and $2.22, which must be maintained. If this happens, XRP price will continue its wave structure with the expected fifth wave targeting $5.85. Such a move would represent 132% gains from the current price.

“XRP is ready for an all-time high.”

Similar sentiments were shared by popular analyst Egrag Crypto, who said that XRP was “gearing up for its next big leap” as it consolidated above $2.30.

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According to the analyst, XRP followed a similar classic Fibonacci extension move in 2017, breaching the 161.8% extension level before making a parabolic move toward the 223.6% Fibonacci extension level.

If history repeats itself, “this would put XRP between $27 – $222, aligning with the Fibonacci extension tool and 2017 cycle correlations.”

The analyst, however, sets the medium target for XRP price between $8 and $13.

“XRP’s next major leg up could target $8.5 – $13 (Fib 1.272 and Fib 1.414).”

Increasing onchain activity backs XRP’s upside

Data from Cointelegraph Markets Pro and TradingView shows that the XRP price drawdown over the last week pushed the cryptocurrency to a three-month low of $1.94 on Feb. 28. 

XRP investors took advantage of the lower levels and accumulated more at discounted prices. Onchain data from market intelligence firm Glassnode reveals that active XRP addresses have surged by a whopping 680% in the past week, jumping from 59,900 on Feb. 27 to 468,171 on March. 4.

Similarly, XRP transaction count increased by 23% over the same period, signaling growing network usage. 

Such a spike in network activity often indicates growing investor interest and could be an early signal of a potential bullish reversal. 

Popular analyst Brett also points out that whale activity rose in tandem with increasing onchain activity as large investors scooped approximately 1 billion XRP tokens in the past 24 hours. 

🚨KABOOOOOOOOOOOOOOMOOOOM

Whale activity in the $XRP market has surged, with nearly 1 billion coins purchased in the past 24 hours. Daily active addresses also spiked, exceeding 135,000 on March 4, signaling growing interest in the altcoin. pic.twitter.com/bQEJfF5dNC

— Brett (@Brett_Crypto_X) March 4, 2025

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.