Will Wanchain Follow the Footsteps of ICON and Double in Value?

Wanchain Price Highlights

• The WAN price has made a double bottom at 2000 satoshis.
• There is resistance at 4500, 7500 and 12,500 satoshis.
• The price has broken out above a 267-day descending resistance line.
• A golden cross is about to transpire.

Trader @j0hnnyw00 tweeted a combined WAN and ICX price chart, stating that he believes that the WAN price movement will soon mirror that of ICX — achieving considerable gains in the process.

You don't need to do scalp trade for only 5-10% gains in the bull run.
Just enter at the bottom, wait for the big gains.$WAN will follow $ICX soon and definitely. pic.twitter.com/saqOdOawDn

— Johnny Woo (@j0hnnyw00) February 2, 2020

Let’s take a closer look at the WAN price movement and determine if that will really be the case.

Double Bottom

The WAN price has been making new all-time lows since the beginning of 2019. In August, it reached a low of 1880 satoshis. The price returned to this level in January 2019, successfully completing a double bottom. This bullish reversal pattern was combined with a very significant bullish divergence in the weekly RSI, which is currently moving upwards towards the 50-line. If the WAN price begins an upward move, the closest resistance area is found at 4500 satoshis, followed by 7500 and 12,500 sats. On January 23, the WAN price broke out from a resistance line that had been in place for 267 days. Afterward, the price decreased in order to validate it as support and has been moving upwards since.

Future WAN Movement

The upward move has been strong since the WAN price has created two successive bullish engulfing candlesticks However, we can see that the price has reached what seems like the top of the range at 2900 satoshis and created a long upper wick, a sign of selling pressure. The price is trading above the 50- and 200-day moving averages (MAs), which have yet to make a bullish cross. The most common movement here seems like a re-test of the previous breakout level at 2450 satoshis, supported by the presence of the MAs, before another attempt at breaking out — which, if successful, would take the price towards 4500 satoshis. To conclude, the WAN price has broken out above a significant resistance line, indicating that it wants to begin a new upward trend. After a possible short-term retracement, we believe the price will continue its movement towards 4500 satoshis.