XRP Bulls Eye All-Time Highs as Key Support Holds

XRP traders are eyeing a rally to new all-time highs as key support holds, with the altcoin trading 28% above its February lows and up 6.5% over the last 24 hours. Analysts are bullish on XRP's prospects, with Elliott Wave analysis projecting a price target of $5.85. Dark Defender, a crypto market analyst, highlighted that XRP was trading above a key support zone in the four-hour timeframe, representing the 38.2% Fibonacci retracement of the November rally to seven-year highs of $3.40. If XRP maintains its current wave structure, it could continue its rally with the expected fifth wave targeting $5.85, representing 132% gains from the current price.

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.

Increasing onchain activity backs XRP’s upside, with data from Cointelegraph Markets Pro and TradingView showing 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, with active XRP addresses surging by a whopping 680% in the past week. 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.