The current cryptocurrency market retraced heavily as Bitcoin reached its new all-time high price of $68,000. Many altcoins crashed and entered a short-term bear market. Investors and traders are waiting for a confirmation of a trend reversal to enter the market. RavenCoin is a project that has the smallest market capitalization currently. It is also one of those altcoins that currently have interesting technical formations. Should you buy RVN tokens in anticipation of a break in the downtrend? Or should you wait further for stronger confirmations?
What is Ravencoin Crypto RVN?
Ravencoin is a token that is mined on simple GPU and ASIC miners. It was forked from the Bitcoin chain in 2018. The coin provides traders with an avenue to create their tokens and send them to other traders. The developer’s mission was to create a token that could be mined using just the GPU of PCs.
Furthermore, they wanted the token to be mined by anyone without purchasing high-grade mining equipment. Unlike the majority of the tokens in the market today, there was no ICO when Ravencoin launched. This is because the developers wanted to avoid the concentration of the token in some hands.
Even though alike, Ravencoin’s difference with Bitcoin is mainly down to the consensus mechanism behind its design. The consensus mechanism is defined as how transactions made are added to the blockchain. Ravencoin uses the proof of work consensus mechanism. Even though it now uses the KAPOW mining algorithm, the token previously used X16R. With the KAPOW mining algorithm, the mining software to be used is randomly picked.
Furthermore, it makes it extremely difficult for hackers to manipulate the process. The mining method also means that miners’ rewards are based on the amount of mining power contributed to the network. This means that miners using low-end devices to mine the token would also be eligible for rewards. Unlike Bitcoin, Ravencoin destroys transfer fees instead of paying them to miners. The total number of coins to be mine is at a fixed rate of 21 million.
How to Buy RVN?
There are multiple exchanges that offer RVN as a token. But investors should always choose a solid broker. Not only do they have the best prices to offer, but also they provide a safe and secure infrastructure to send and receive tokens. In case there was any problem, a support team would directly step in. On the other hand, other brokers’ support teams would take days if not weeks to resolve a problem.
To Buy RVN, you can do so through Binance or Gate.io.
Why Should you Look to Buy RVN tokens?
It is very simple. Most successful crypto traders nowadays are constantly on the lookout in the crypto market. They try to catch interesting technical formations and ready up long/short trades. This is because the cryptocurrency market is heavily influenced by technical analysis, and most crypto traders tend to look for the same indicators. This is how the prophecy becomes self-fulfilled.
Specifically for RVN, and as mentioned earlier, this token entered recently a bear market. Interestingly enough, we can see a clear formation of a symmetrical triangle in figure 1. If prices manage to breach the upper triangle, we can confirm higher prices going forward.
On the other hand, breaching the triangle from the lower side might signal lower prices, especially at the beginning of 2022. Prices might reach back $0.05. Nonetheless, it is easy to gauge our risk by setting adequate stop-loss levels. The $0.09 price looks like a good SL area. But if things turn to the good side, prices might increase by more than 20%!
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