On January 14, the Ravencoin (RVN) price reached the 280 satoshi support area — a movement that historically has preceded significant upward movements.
In anticipation of this possible increase, the RVN price has created a descending wedge — which is considered a bullish reversal pattern.
Cryptocurrency trader @imBagsy posted a chart of the RVN price, outlining a movement in which the price will reach 440 satoshis — an increase of 60 percent from the current price level.
Sponsored$RVN update:
Fly little birdie. pic.twitter.com/YQvoVps4Of
— Bagsy (@Bagsy) January 15, 2020
Will the RVN price reach the target? If so, when will it do so?
Long-Term Ravencoin Bottom
Throughout the price history of RVN, the 270 satoshi support area has been instrumental in initiating strong upward movements — having done so three times until now. The price reached this area once more on January 14, created a long lower wick and has been increasing since.
In addition, there is a very strong bullish divergence developing in the weekly RSI. However, instead of the resistance area at 440 satoshis, we think the RVN price is following a descending resistance line. The line is currently near 400 satoshis, making that a more likely target for the ensuing upward move.
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Descending Wedge
A closer look at the Ravencoin price movement reveals that the price has been trading inside a descending wedge since October 25. This is a bullish pattern that often leads to a breakout. This possibility fits with our long-term analysis.
Furthermore, the RSI has been generating a bullish divergence the entire time the price has been trading inside this bullish pattern.
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There is another characteristic of the Ravencoin price movement that suggests that the price will eventually break out.
On January 14, the price decreased below the previous low of 280 satoshis. However, the lower price levels could not be sustained and the price immediately moved upward. In the process, it created what resembles a morning star pattern, in which a bearish candlestick is followed by a doji and finalized with a bullish candlestick that closes well above the initial decrease level.
Future Movement
While we believe it is likely that the Ravencoin price will break out, we cannot state the same about the target of 440 satoshis.
There is very strong resistance between 350-360 satoshis, created by a confluence of factors such as the 200-day moving average (MA), a previous resistance area and the beginning of the resistance line of the wedge.
Furthermore, the 100-day MA has begun to turn downward, reducing the possibility of a bullish cross in the future. Therefore, once the Ravencoin price gets there, we think a retracement is due — possibly with the aim of validating the resistance line of the wedge.
To conclude, the RVN price is trading inside a descending wedge out of which we believe it will break out. A likely target for this breakout if found between 350-360 satoshis.
