Ravencoin (RVN/BTC) is a market that looks ready to rally. It dropped to as low as 0.00000321 on January 14, 2019. At that point, Ravencoin breached the line in the sand of 0.00000344. We were curious whether the market will eventually recover the support or it will continue to trend lower. We got a response yesterday.
Technical analysis shows that RVN/BTC has turned bullish. This view comes after the market recovered support of 0.00000344 yesterday, January 22, 2019. The recovery sparked a rally that saw Ravencoin climb to as high as 0.00000403 on the same day. This means that the move below 0.00000344 was essentially a bear trap.
In addition, the rally has also enabled Ravencoin to break out of a large falling wedge on the 4-hour chart. The breakout was pushed by heavy volume to indicate the growing presence of bulls.
Lastly, the rally also drove the market above all three major moving averages on the 4-hour chart. This means that the 50 MA, 100 MA, and 200 MA are all acting as support levels. They will act as an escalator and slowly keep pushing the price up.
The strategy is to buy on dips as close to 0.0000036 as possible. We expect RVN/BTC to correct, but also establish a bullish higher low at this level. As long as bulls hold this support, they will likely ignite a rally to the range high of 0.00000458. Take that out and the next target is 0.00000525.
The process may take less than a month.
4-hour Chart of Ravencoin/Bitcoin on Binance
As of this writing, the Ravencoin/Bitcoin pair is trading at 0.0000038 on Binance.
Summary of Strategy
Buy: As close to 0.0000036 as possible.
Targets: 0.00000458 and 0.00000525.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.