Waltonchain potential reversal area
Updated
WTC has made significant new highs in January, when almost everything else was tanking already. At this point, we have seem to have finished wave 3 (consisting of 5 clear waves itself) and are correcting before starting wave 5. From the chart we can clearly see that after wave 1 we had a very long and deep correction. There are several reasons why I do not think this will happen again. First, in October/November WTC suffered a lot from the China FUD. At this point there is no FUD story. Secondly, there are major events lined up for WTC in March, including the release of the mainnet with already 6 childchains, a new website and a new wallet with full mining support. I'm expecting that building up to these events we will be seeing some good rallies upwards.
I have indicated a potential reversal area in green. This includes several areas that have previously worked as support or resistance and the top of this box is at the .618 fibo level of Wave 2. MACD seems ready to cross and the RSI has to break its own trendline first before we will see a real move upwards.
I have indicated a potential reversal area in green. This includes several areas that have previously worked as support or resistance and the top of this box is at the .618 fibo level of Wave 2. MACD seems ready to cross and the RSI has to break its own trendline first before we will see a real move upwards.
Note
I probably jinxed it by saying there is no FUD story at this point, guess what showed up two days later... Anyways, price exactly bounced from the lower band of the green area. But now that is has already been tested, without the FUD truly being addressed by the team, I expect that price will move back into this area. With a potential rally of BTC and this FUD story, we might see more correction than expected at first. Will keep this updated.Note
Lets just say that this area worked perfectly.Note
Note
With the major news of a partnership with Alibaba cloud, we will probably close above the trendline of the downwards channel.Note
We are currently retracing after the major impulse move. This usually is one of the best points to enter a trade. Especially since Asia still has to wake up to this news, this might be a very good point to step in. Note
Wow... a very eventfull few days for waltonchain. I still strongly believe in the fundamentals of WTC, even more so after a team member was elected as VP of the Fujian IoT association. This is supposedly becoming the core of the One Belt One Road initiative. That being said, their PR/marketing is horrible and almost all value in cyrpto to this point is derived from speculation based on PR/marketing. That is why the mainnet launch of walton will be extremely important. If all goes well, walton will have 6 actual big users of their network in about a month. At that point, price will be more based on actual usage instead of speculation.For now, we are back in the downwards channel. Price respected the green zone again yesterday, bouncing off nicely. However, if there are no further developments from the team, I'm expecting more downwards movement coming week. Mainnet is scheduled for Late Q1/Early Q2, so we might end up going all the way back to the black trendline. But walton always has some surprises up its sleeve :).
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