XRP is trading 28% higher than its February 28 low of $1.94, up 6.5% over the past 24 hours. Traders remain hopeful of a recovery as the altcoin holds above a key support level.
XRP/USDT daily chart | Source: TradingView
Elliott Wave Forecast for XRP at $5.85
Cryptocurrency analyst Dark Defender noted that XRP is trading above a key support zone on the 4-hour timeframe, as illustrated in the chart below.
Notably, this price zone coincides with the 38.2% Fibonacci retracement level of the rally from November to a seven-year high of $3.40. Dark Defender sees this as a possible bottom of “Wave 2,” saying “we are looking for XRP to head towards $2.60.”
On the downside, the analyst points to $2.33 and $2.22 as two important support levels that need to hold. If this happens, XRP’s wave structure will continue to be preserved, with the fifth wave expected to take the price to $5.85. If this scenario materializes, XRP could surge 132% from its current price.
A similar view is shared by popular analyst Egrag Crypto, who believes that XRP is “preparing for the next big jump” as it holds above the $2.30 region.
XRP/USDT 4-hour chart | Source: Dark Defender
According to him, XRP followed a classic Fibonacci extension pattern in 2017, surpassing the 161.8% Fib extension level before making a parabolic move to the 223.6% Fib extension level.
If history repeats itself, “XRP could hit $27-$222, which aligns with the Fibonacci extension tool and the 2017 cycle.”
However, the analyst puts a medium-term target for XRP between $8-$13.
XRP/USDT 2-week chart | Source: Egrag Crypto
On-chain activity reinforces XRP’s bullish trend
Data from TradingView shows that XRP’s price drop over the past week has pushed the coin to a three-month low of $1.94 on February 28.
XRP investors have taken advantage of this opportunity to buy at a discount. On-chain data from market analytics firm Glassnode reveals that the number of XRP active addresses has jumped 680% over the past week, from 59,900 addresses on February 27 to 468,171 addresses on March 4.
XRP Active Addresses and Transaction Count | Source: Glassnode
Similarly, XRP transaction volume also increased by 23% over the same period, indicating increased network usage.
A spike in network activity is often a sign of growing investor interest and could be an early signal of a potential bullish reversal.
Popular analyst Brett also highlighted that whale activity is increasing alongside on-chain excitement, with large investors buying up around 1 billion XRP tokens in the past 24 hours alone.
