- Ripple is trading at a 1-month high after correcting past the stubborn resistance at $0.28 and $0.30.
- The formidable gains could prove that Ripple as a company does not have control over the price of XRP.
- The RSI shows XRP in overbought conditions but other technical levels are prime for more upside action.
Ripple is leading the recovery on the cryptocurrency market on Wednesday. The formidable gains commenced last weekend and have been gracious enough to propel XRP above several key resistances including $0.28 and $0.30.
The XRP community has in the recent past blamed the issuing company, Ripple for the bad performance of the token in the last three months. The community cites the sale of XRP tokens to institutions. The community sees the sale of the tokens as dumping and according to them is making XRP not as competitive as the other cryptos on the market.
The CEO of Ripple Brad Garlinghouse has more than once come out to say that Ripple has no control over XRP price. However, his words have not been convincing enough. However, the impressive 7% rise on Wednesday could help save the company from an ongoing petition that seeks to stop XRP sales.
Read also: Cryptocurrency market update: Bitcoin lags as Ethereum and Ripple rise to 1-month highs
Ripple price technical picture
The 4-hour chart shows XRP having impressively broken above the descending trendline resistance. Moreover, the token has made headway above various resistance levels including $0.27, $0.28 and $0.30. Trading above the simple moving averages (both the 50 SMA and the 100 SMA) encouraged the bulls to increase their positions. XRP is currently exchanging hands at $0.3050 after testing the next hurdle at $0.31.
The moving average convergence divergence (MACD) and the relative strength index (RSI) are both sending out bullish signals. The MACD at +0.0095 divergence is increasing while the RSI at 80.50 is still making headway in the overbought levels. If XRP ignores the overbought conditions, the price could test $0.32 in the near-term but traders need to be alert as a reversal may be underway.