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 $5.85Dark 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.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 upsideData 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. 🚨KABOOOOOOOOOOOOOOMOOOOMWhale 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/bQEJfF5dNCThis 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.