Many traders and the Sia community were waiting for it. The "W" weekly has just been confirmed during the closing this Monday at 1 am but what does it mean and what to expect ?
- Sia is a decentralized storage platform secured by blockchain technology.
- Siacoin tokens are used to make smart-contracts between users. It also can be mined and traded.
- "Double bottom" or "W" is a chart pattern used in technical analysis to explain or predict a futur movement.
What does it mean?
A "W" is often heralding a change in momentum more precisely an "bullish" uptrend. However to validate a "W", the second bottom must be equal to or greater (higher) than the previous bottom. In addition it is necessary that the "neckline" is exceeded even to be tested. To better understand this, let's look at the Siacoin graph with the SC / BTC peer on Binance. Before we start, for technical analysis we will use TradingView, if you want tutorials to use it well, let me know in the comments.
So here, we can see the W designate. Oh I fogot.
Now it's clearer. As we can see, a first bottom is done at 0.00000016BTC represented by the line in cyan, second a top at 0.00000028BTC that we call Neckline, third a second bottom 0.00000016BTC so equal to the first one represented too by the line in cyan.
So we have the beginnings of a "W" However having a double bottom is not enough to say that there is a "W". To confirm this, a candle must break the neckline and remain above or on the neckline during closing. The neckline seems to be at 0.00000028BTC and as we can see a candle after the long green one it's closed above the neckline. We have our "W".
What to expect?
As said before, the formation and confirmation of a "W" heralds a change in momentum. Siacoin is very likely to pass into a bullish momentum. We can then expect a price increase. However, currently the market is taking a bearish trend following the fear released by the coronavirus, the price is therefore currently 0.00000026BTC yet we should expect a rise in the coming weeks or months, reaching the first resistance at 0.00000042BTC so an increase of about 60% and may be reach a second resistance at 0.00000072BTC so an increase more than 180%.
February seems to be a very good month for Sia and its Siacoin token. After the release of the Skynet project, the first project using the Sia technologie found here. It is an increase in the price which is announced for its token despite the current state of the market.
Sia is evolving and seems to be on the right track. Having taken an interest in Sia in early February, I remain optimistic about the future of Sia and I think Sia has great potential to express. It would not be trivial for me to see new projects appear using Sia's technology, knowing that since Skynet, Sia seems to interest more and more people. But you, what do you think of Sia? Are you more optimistic or pessismist when it comes to the future of Sia technology?