A relatively unknown cryptocurrency with the name of Ravencoin has seen an impressive 49% price hike over the past 24 hours of trading. The price increase comes days after the announcement of the addition of Ravencoin to Binance and hours after the announcement of a late-October mainnet launch.
Ravencoin is currently ranked 59th in terms of overall market cap across the entire industry. It has a total market cap value of around $112 million as the 7-month old cryptocurrency sees a 197% price increase over the past 7 trading days.
What Exactly is Ravencoin?
With a hype level of this magnitude, it can be easy to ignore any fundamental factors relating to the coin. This is where the majority of traders fall apart. It is always important to do your own research on any coin that you are considering investing in.
Ravencoin was created from the Bitcoin codebase but utilizes the X16R mining algorithm. The ASIC-resistant coin utilizes 16 different mining algorithms which automatically further increases the security of the network.
Interestingly, the coin takes its name from the land of Westeros within the Game of Thrones world.
We listed Ravencoin as one of the projects to watch in May 2018, so read that article to learn more about the project.
Why Did Ravencoin (RVN) Experience Such a Steep Price Increase?
It all began on October 11, 2018, when Changpeng Zhao (CZ), CEO of Binance, one of the largest cryptocurrency exchanges in the world by volume, announced the addition of Ravencoin to their platform in the following tweet.
Back to listing. Ravencoin, no ICO, community project, humble people, no listing fee. https://t.co/MMJM4xyYtp
— CZ Binance (@cz_binance) October 11, 2018
As seen on the chart below, the tweet caused the RVN/BTC market to rocket by up to 80% that same day.
RVN/BTC – MEDIUM TERM – 4HR CHART
We can see that price action for RVN/BTC increased after the announcement on October 11, 2018. The market remained relatively quiet over the following 2 days until experiencing a further price increase around October 15, 2018.
The price surge was further propelled on October 21, 2018, when the Ravencoin team tweeted an announcement of an upcoming mainnet launch on October 31, 2018.
The mainnet for the protocol asset layer will be released on October 31, 2018. This is the one year anniversary of the Ravencoin founding and the 10 year anniversary of Bitcoin.
The network has been live since January 3 which is the anniversary of the Bitcoin network launch.
— Ravencoin (@Ravencoin) October 21, 2018
We can see that since Ravencoin was added to Binance on October 11, price action for RVN against BTC has surged a total of 325% from low to high.
RVN/BTC – SHORT TERM – 1HR CHART
Analyzing price action for the RVN/BTC market from the short term perspective above, we can see that the recent surge in price had encountered a form of resistance at an upside 1.618 Fibonacci Extension level (drawn in blue) priced at 942 SATS.
Upon reaching this level, price action pulled back slightly until finding support below at the short-term .382 Fibonacci Retracement level (drawn in green) priced at 775 SATS.
Moving forward, if the bears take control of the pressure within the market and push RVN/BTC lower, we can expect immediate support below at the short-term .5 Fibonacci Retracement level priced at 705 SATS.
If the bears progress further to push the market below the support at 705 SATS, then we can expect further support at the .618 Fibonacci Retracement level (drawn in green), priced at 635 SATS.
On the other hand, if the bulls can continue along their aggressive path and push price action above resistance at the 1,000 SATS handle, we can expect further resistance higher to be located at the 1.272 and 1.414 Fibonacci Extension levels (drawn orange), priced at 1,104 SATS and 1,181 SATS, respectively.
Further resistance higher can then be expected at the 1.618 Fibonacci Extension level priced at 1,293 SATS.
Final Thoughts
The RVN cryptocurrency has already seen a significant wave of investment over the past 30 trading days, increasing by a total of 261% against the US Dollar value.
After an asset experiences such a wave of investment, it is not unusual to see it pull back slightly to one of the shallow Fibonacci Retracement levels before continuing higher.
