Ravencoin Increases by 50% in a Week: Insignificant Pump or New Market Cycle?

2019-12-10 07:35

During the week of December 2-9, the Ravencoin price increased by a massive 50 percent. It has decreased slightly since then.

The upward move began on December 3, the same day the Binance exchange announced it has added margin trading for Ravencoin. The Ravencoin price closed the day with a 21 percent price increase. However, the pump was very sudden, and the fact that it preceded the Binance announcement by mere hours lead to calls of market manipulation.

Despite the controversy, cryptocurrency trader @postyxbt stated that there is a possible occurrence worth keeping an eye on for Ravencoin — which suggests that the price will continue moving upward.

$RVN

Clean break of the 100MA, retest as support, continuation…

Clean break of the 200MA, retest as support, ??? pic.twitter.com/Qr6A3jzGy0

— Posty (@PostyXBT) December 9, 2019

After the Ravencoin price broke out above the 100-day moving average (MA), it validated it as support and continued moving upward.

Yesterday, it did the same with the 200-day MA. Will the Ravencoin price continue moving upward after validating the 200-day MA? Keep reading below and find out.

Long-Term Ravencoin Price Bottom

The RVN price has responded to the 270 satoshi support area several times, most notably in October 2018/2019 and February 2019.

After the first two touches, an upward market cycle of varying length and height transpired. Since the Ravencoin price touched the support area in October 2019, a complete market cycle has yet to occur. However, the price took the first step of doing so last week with a very significant price increase and a weekly bullish engulfing candlestick.

Trading Range

There are several important trading areas found at 380, 460 and 520 satoshis, respectively.

The 380 satoshi area will likely act as support and reverse the Raven price if it gets there. 460 satoshi is the current resistance area while 520 satoshis are the next closest resistance area if the price breaks out.

Additionally, incorporating the MAs reveals the movement outlined in the tweet. The Ravencoin price moved above the 100-day MA on December 3 before validating it as support. It is currently doing the same with the 200-day MA.

Retracement

The short-term chart suggests that the Ravencoin price will first retrace before possibly moving higher.

There is a massive bearish divergence developing in the RSI, visible up to the 12-hour time-frame. Combined with the swiftness of the increase and the lack of retracement, this makes us believe that the market is due for a retracement.

The 380 satoshi support area should offer the most likely place to initiate a reversal.

To conclude, the Ravencoin price was subject to a rapid price increase over the previous week. While the market outlook remains bullish, a retracement towards the support at 380 is to be expected.

Images courtesy of TradingView, Twitter.

The post Ravencoin Increases by 50% in a Week: Insignificant Pump or New Market Cycle? appeared first on BeInCrypto.

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