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.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.