Trade Recommendation: Ravencoin
We’ve been watching Ravencoin/Bitcoin (RVN/BTC) for some time now. We have a gut feeling that it has ultra-bullish potential. That’s because it climbed from a low of 254 satoshis on October 15, 2018, to its all-time high (ATH) of 1,045 satoshis on October 22. That’s an increase of over 311% in seven days.
Of course, everything is subject to the laws of gravity, especially the cryptocurrency market. Ravencoin has been dropping after posting its ATH. The good news is it is nearing a level where the risk and reward ratio is highly-favorable.
Technical analysis shows that RVN/BTC is creating a large falling wedge on the 4-hour chart. So far, Ravencoin is following the script. It bounced off the C-wave when it dropped to 440 satoshis on November 15. We’re expecting this dead-cat bounce to go as high as 514 satoshis before one final dump.
This dump should take the market as low as 430 satoshis. We expect this area to be a high demand zone. After all, RVN/BTC used it to stage its first ever parabolic run.
On top of that, the RSI is also creating a large falling wedge the pattern. The next drop should take the indicator to extreme oversold territory and possibly a double bottom structure.
The strategy is to buy the dip as close to 430 satoshis as possible. If RVN/BTC defends its parabolic support, then we can expect it to bounce to our initial target of 622 satoshis. Take that out and 785 satoshis is in sight.
The process may take more than a month.
4-Hour Chart of Ravencoin/Bitcoin on Binance
As of this writing, the Ravencoin/Bitcoin pair is trading at 483 satoshis on Binance.
Summary of Strategy
Buy: As close to 430 satoshis as possible.
Target: 622 first and then 785 satoshis.
Stop: 410 satoshis.
NOTE: a satoshi is the smallest unit of Bitcoin, which equals to 0.00000001 BTC.
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.