The People’s Bank of China reiterated its stamp of illegality on cryptocurrencies on Friday. This statement prompted several exchanges to deactivate the trading accounts of Chinese clients. Ripple price is inherently correlated with Bitcoin prices. With a lack of upside momentum on the latter, Ripple price continues to struggle for any upside traction in an otherwise choppy trading day.
Ripple price on the XRP/USD pair is marginally up but faces strong headwinds as the bearish pennant pattern on the daily chart evolves.
Ripple price has given up intraday gains, thus confirming the positioning of the upper border of the evolving bearish pennant pattern. The bears need to initiate a breakdown of the 0.9225 support, taking out the pennant’s lower boundary simultaneously, to complete the pattern. This scenario opens the door for a measured move towards 0.7007. Achieving this measured move requires taking out the 0.8008 support along the way.
On the flip side, a break above the pennant’s upper boundary targets 1.0389. This move invalidates the pattern and also provides an opportunity for 1.1254 to come into the picture. A further advance above this point opens the door towards 1.2418 (31 August and 10 September highs), with 1.3229 also lining up as an advanced upside barrier.