Ravencoin has seen an interesting year of trading during 2019 after increasing by over 670% in the first half of the year and then dropping by 75% during the second half. The cryptocurrency started the year at the $0.012 level and traded sideways during the first 2 months. During February, Ravencoin started to rise from the $0.010 level and went on to surge by a total of 660% to reach the April high of around $0.07.

Ravencoin remained trading around this level for the next few months and even managed to climb as high as $0.08 during June. However, after reaching this high, Ravencoin rolled over and started to fall drastically. Ravencoin went on to drop by a total of 72% to reach the current end of year trading price at $0.022. Despite the Q3/Q4 price declines, Ravencoin is still up by a comfortable 75% from the 2019 opening price!

Holders of Ravencoin can be excited by the fact that Ravencoin has a very strong year ahead of itself in 2020. The development team behind Ravencoin have proven themselves as highly competent throughout 2019 as the project started to gather a large amount of momentum. The project has also implemented its very own mining algorithm that is designed to prevent ASICs from joining the network and ruining the token distribution within the network.

For the reasons stated above, and more discussed below, I believe that RVN has the potential to surge by a total of 350% in 2020 to reach my target price of $0.10 at some point during the year. 

In this article, I’ll firstly cover a range of topics that I believe will influence RVN in reaching my $0.1 target during 2020 and then analyze RVN on the daily chart to highlight some areas of resistance on the way toward the target.

What Is Ravencoin?

Ravencoin was founded in January 2018 after forking from Bitcoin codebase. The name for the project originates from Game of Thrones lore in which Ravens are used as messengers. Ravencoin is designed to carry statements of truth between users over a blockchain network!

The entire project is designed to help facilitate the ownership of assets. Ravencoin tokens are used to transfer digital assets between users. The developers have the aim of creating a full asset aware system in which you can create a unique asset without the need to mine them. These assets can then be used as a normal asset and be given a name and value. The Ravencoin team has already started to create specific assets such as tokenizing precious metals, currency, land deeds, loyalty points and much more!

To find out more about Ravencoin, take a look at this in-depth write-up.

Development Continues For Ravencoin

Ravencoin has an active development roadmap that you can view here. The first 4 phases of their development have been completed as the team focuses to complete the last 4 phases to complete their roadmap.

Furthermore, data from Santiment shows that the development team continues to work throughout the majoirty of the year and we can expect it to pick up as 2020 progresses.

What About Its Special Mining Algorithm?

Along with having 1 minute block time and a total supply of 21 billion coins, Ravencoin also uses a different hashing algorithm to Bitcoin. Ravencoin uses the X16Rv2 algorithm to achieve ASIC resistance. Projects aim to remove ASICs from mining on their network as this typically skews the token distribution within their economy as traditional CPU and GPU miners are unable to compete with the specialized ASIC hardware.

The X16Rv2 algorithm is descendent from the x11 mining algorithm. The X11 utilized 11 different hashing functions in its mining algorithm. However, ASIC producers eventually managed to configure their hardware to mine the individual 11 hashing functions. The X16Rv2 hashing function takes things futher by introducing 5 more hashing functions into the equation.

Furthermore, the X16Rv2 hashing algorithm uses a random ordering of which hashing function is to be used - making it very difficult for ASIC producers to know how to configure their miners!

Read more about the X16Rv2 algorithm here!

Ravencoin (RVN) Price Analysis

LONG TERM - DAILY CHART

What Has Been Going On?

Analyzing the daily chart above we can instantly see the epic surge that RVN witnessed during the first half of the year. The cryptocurrency initially managed to climb as high as $0.07 before stalling and dropping back into the support at $0.05. However, during May 2019, RVN started to surge once again and managed to climb further higher as it rose above the $0.08 level during early June 2019.

Ravencoin went on to roll over at $0.08 and then started to fall throughout the rest of the year. The cryptocurrency went on to decline from July through November until support was found at the $0.02 level during November 2019.

RVN attempted to rebound during early December but failed to overcome the resistance at $0.0344 which is provided by the bearish .236 Fibonacci Retracement level. This area of resistance was also further bolstered by the 200-days EMA. Ravencoin went on to fall back into the support at $0.020 and is now trading sideways around the $0.022 level.

Are We Bullish Or Bearish (as of Late December 2019)?

As of Late December 2019, we are trading within a bearish trading condition. For this bearish condition to continue further lower we would need to see Ravencoin dropping and falling beneath the support at $0.020. For this market to be considered as neutral, we would need to see RVN climbing above the $0.025 level. As soon as Ravencoin breaks above $0.035, we could consider the market as turning bullish.

If the sellers do step in and start to push Ravencoin lower, we can expect immediate support to be located at the $0.02 level. If the selling continues beneath here the market will continue on its bearish run and we can expect immediate support to be located at $0.01827 (downside 1.272 Fibonacci Extension level). Beneath this, additional support is found at $0.015, $0.0145 (downside 1.414 Fibonacci Extension level), and $0.01.

Where Is The Resistance On The Way Up TO $0.10?

Alternatively, if the bulls hold the $0.022 support and start to push higher, we can expect immediate resistance to be located at $0.028 (100-days EMA), $0.032 (200-days EMA), and $0.0344 (bearish .236 Fibonacci Retracement level). Above this, higher resistance is then located at $0.0432 (bearish .382 Fibonacci Retracement), $0.050 (bearish .5 Fibonacci Retracement level), and $0.057 (bearish .618 Fibonacci Retracement level).

If the buyers can continue to break above the $0.060 level, higher resistance is then to be expected at $0.065, $0.069, and $0.0733 (bearish .886 Fibonacci Retracement level). The bulls will then meet resistance at the $0.08 level but if they can break above we can expect immediate resistance to be located at $0.081 (1.272 Fibonacci Extension level), $0.087 (1.414 Fibonacci Extension level), and $0.097 (1.618 Fibonacci Extension level). 

If they can clear the resistance at $0.097, the bulls will be clear to make an attempt at my 2020 target of $0.1. 

Conclusion

In conclusion, I do believe that Ravencoin has a very strong potential to increase by a total of 350% from the closing 2019 price to reach my 2020 target of $0.1 at some point during the year. The development team continues to implement improvements to their network and are expected to add further assets to its platform as the year develops. Furthermore, as the project uses the x16Rv2 mining algorithm, we can be certain that ASICs will not dominate the market and take over.