Ravencoin (RVN) Rally Arrives at Crossroads
RVN has created expectations for abandoning the recent lows permanently, but traders also see the rally as relatively risky.
Ravencoin (RVN) had its turn as the latest coin to rally despite the general market stagnation, surging by more than 127% week-on-week from recent lows of around $0.011. It became extremely volatile on Tuesday, trading at $0.021 as of 9:00 UTC after a brief rise to $0.023.
Traders see RVN as extending its rally against Bitcoin (BTC), not returning below 300 Satoshi. However, the dollar value of the asset is uncertain as BTC prices are also at a crossroads.
The end of February brought the first significant rally for RVN, taking it from lows of 269 Satoshi and $0.012 to the current peak at 718 Satoshi and as much as $0.027.
RVN is still a relatively unknown asset but considered important in the crypto ecosystem. The Ravencoin project seeks to create a platform for ticker reservation, with the aim of issuing blockchain-based securities. It is still building its platform, and security tokens are yet to pick up in earnest. However, the stagnant BTC prices are one reason for altcoins and tokens increasing their relative value in Satoshi.
RVN is boosted by having more than 44% of its volumes concentrated on Binance, allowing for increased liquidity and the opportunity for bot trading. Traders also see the asset as extremely risky now, with the potential for a significant drop.
The behavior of RVN brings to mind previous coin or token rallies that ended up correcting completely. Chainlink (LINK) slipped from its peak, and various assets on Binance went through a rally cycle. Traders do not see this as a sign of a market recovery but of short-term speculation and pumps for separate tickers.
In the case of RVN, the project is additionally attractive for the mining opportunity.
The Ravencoin network is currently growing its nodes, potentially increasing its decentralization and safety before being used to provide a platform for security tokens.