XRP Traders Anticipate Explosive Rally to $5.85 as Key Support Holds Strong!

XRP’s price is currently trading 28% above its recent lows of $1.94, which were reached on February 28. In the last 24 hours, the altcoin has experienced a notable increase of 6.5%. Traders remain optimistic about a potential rally as XRP maintains its position above a crucial support level. This level corresponds to the 38.2% Fibonacci retracement of the significant rally observed in November.

Key Support Levels and Future Projections

Market analyst Dark Defender suggests that this support level signifies the “Wave 2 bottom,” indicating that XRP is poised for a move towards $2.60. To sustain this upward momentum, it is essential for XRP to hold above key downside levels of $2.33 and $2.22. If these levels are maintained, XRP is expected to continue its wave structure, with the anticipated fifth wave targeting an impressive $5.85. This potential move would represent a staggering 132% gain from the current price.

Historical Context and Fibonacci Extensions

Interestingly, XRP’s price action mirrors a classic Fibonacci extension pattern observed in 2017, where it breached the 161.8% extension level before embarking on a parabolic ascent towards the 223.6% Fibonacci extension level. This historical context provides traders with a framework to understand the potential for future price movements.

Surge in Onchain Activity and Whale Accumulation

Recent onchain data from market intelligence firm Glassnode reveals a remarkable surge in active XRP addresses, which have skyrocketed by an astonishing 680% over the past week. The number of active addresses jumped from 59,900 on February 27 to an impressive 468,171 by March 4. This surge in activity indicates a growing interest in XRP among traders and investors alike.

Moreover, popular analyst Brett has noted a corresponding increase in whale activity, with large investors acquiring approximately 1 billion XRP tokens within the last 24 hours. This significant accumulation by whales suggests a bullish sentiment in the market, further fueling the anticipation of a price rally.

Market Sentiment and Future Outlook

🚨KABOOOOOOOOOOOOOOMOOOOM! The surge in whale activity and daily active addresses, which exceeded 135,000 on March 4, signals a heightened interest in the altcoin. As traders and investors keep a close eye on XRP’s price movements, the market sentiment remains optimistic, with many hoping for a breakout towards the $5.85 target.

However, it is crucial to note that this article does not constitute investment advice or recommendations. Every investment and trading decision carries inherent risks, and readers are encouraged to conduct their own research before making any financial commitments.

For more detailed insights, you can read the original article here.