Why Ravencoin (RVN) price surge by more than 20% in just 24 hours?

Ravencoin (RVN) prices jumped over 38% since Jan 3.
Ravencoin (RVN) prices have jumped over 38% since Jan 3. Image from cryptologos

Key Takeaways:

  • Ravencoin (RVN) price jumped more than 38% between low to high levels since Jan 3.
  • The rally likely took bullish cues from Ravencoin’s upcoming halving event.

NEW DELHI (CoinChapter.com) — Peer-to-peer blockchain platform Ravencoin’s (RVN) token price surged by 38% in just over 24 hours, going from Jan 3’s low of $0.096 to reach Jan 4’s high of $0.134.

The recent surge is particularly impressive since RVN’s 50-day, and 200-day MA lines plotted a death cross on its daily charts. In detail, a death cross occurs when an asset’s short-term moving average moves below its long-term moving average.

RVN prices shrugged off the death cross to chart 6.8% intraday gains on Monday before continuing their rally on Jan 4. At present, the Ravencoin token price has immediate resistance near $0.137. However, if RVN continues its uptrend, Ravencoin prices could challenge $0.16 before corrections pullback prices.

RVNUSD on the daily chart with RSI. Source: Tradingview.com
RVNUSD on the daily chart with RSI. Source: Tradingview.com

However, the relative strength index for RVN token is nearly overbought, clocking a value of 69.11 on the daily charts. An overbought RSI indicates an asset’s upside trend is likely to reverse. Combined with the Ravencoin’s recent death cross, RVN might not maintain its bullish rally.

Also Read: ADA eyes rebound from pandemic era support as Cardano becomes a GitHub star.

As such, the Ravencoin token might fall to immediate support near $0.112. Moreover, a strong downtrend could pull RVN down to $0.10, where its 50-day MA, 200-day MA, 26-day EMA trendlines form a support confluence. As such, bulls would likely try to hold prices above the $0.10 support level.

Meanwhile, trend-based momentum oscillator MACD continues to be bullish for Ravencoin, with expanding bars on the MACD histogram.

RVNUSD on the daily chart with MACD.
RVNUSD on the daily chart with MACD. Source: Tradingview.com

The MACD histogram plots the difference between the MACD line (difference between 12-day and 26-day EMA) and the MACD signal line (9-day EMA of MACD). Expanding bars on the histogram mean the MACD line is moving away from its signal line, indicating strengthening bullish momentum for RVN.

Ravencoin’s Upcoming Halving Driving Prices Up

Ravencoin is a proof-of-work blockchain. The platform helps facilitate token issuance, acting as an alternative to other token-capable chains such as Ethereum. Ravencoin is a protocol based on a fork of the Bitcoin source code but differs in aspects that optimize the project for decentralization and more efficient token transfer.

Unlike Bitcoin, Ravencoin has a total supply of 21 billion RVNs and has a block time of 1 min. In comparison, Bitcoin’s block time is 10 mins. The project also uses a different hashing algorithm called X16R, which allows for more decentralized mining.

Also Read: BTC week ahead Ep21: Hawkish FOMC minutes, jobs data put Bitcoin at risk of falling.

Ravencoin is due to undergo a halving event in a week. Similar to Bitcoin, Ravencoin’s halving will reduce the amount of RVN rewards per block by half. As a result, the mining rewards per block will reduce from 5,000 RVN to 2,500 RVN. The halving event is set to occur at block 2,100,000.

Ravencoin halvings would continue after each subsequent 2,100,000 blocks to the point where the further halving of rewards is impossible.

Often, prices rally upwards after a halving event. However, Ravencoin’s death cross and overbought RSI levels might be a worry for RVN bulls.

At the time of writing, the RVN token was trading at $0.13, up 18.9% intraday.

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