WaltonChain has experienced another significant drop over the past 24 hours of trading totalling 14%. The cryptocurrency is currently exchanging hands at a price of $4.87 and has suffered a further 16.22% decline over the past 7 trading days.
WaltonChain was created by Xu Fangcheng and was intended to become a blockchain that would help to manage the supply chain industry. This would be achieved through the combination of RFID chips and Blockchain Technology. The RFID chips are transponder based chips that can be integrated into products to hold data concerning the supply chain.
The name WaltonChain was derived from the inventor of RFID, Charlie Walton. The cryptocurrency will significantly aid to reduce the number of counterfeit products on the markets as product copiers will not be able to enter data into the supply chain blockchain. It will also help manufacturers and consumers alike to track all the materials within their product and be able to ascertain the authenticity and quality of the product.
The WaltonChain will help companies to track their supply chain through what are known as sub chains. The parent chain, the upper most blockchain will be the WaltonChain level. Companies can then come and create sub chains around the main chain using Walton coin as payments through the sub-chain. The sub-chains are adaptable for specific applications and will allow owners of the sub-chain to choose their own consensus algorithm.
Xu Fangchen has provided much anticipation to the project due to his previous accolades within the supply chain industry. Fangcheng founded Chinese-based Fujan Septwolves Industry which is an apparel company currently valued at $7.3 billion. If this company becomes the first major company to use WaltonChain in supply chain management, we can expect significant other corporations to follow suit.
Let us continue to analyse price action for Walton coin over the long term.
WTC/USD – LONG TERM – DAILY CHART
Analysing the market from the long term perspective above, we can see that price action had experienced a significant bullish run during 2017 when the market started from a low of $0.53 on the 1st of September and extended to an all time high of $47.28 on January 28th 2018. This was an incredible price increase totalling over 6300% from low to high.
The market went on to fall after placing the all time high, originally finding support at the .618 Fibonacci Retracement level priced at $18.17 during February 2018. Price action was not able to stay above this level and proceeded to fall below the 100 day moving average and the .618 Fibonacci Retracement during March until the market had reached support at the .786 Fibonacci REtracement priced at $10.27.
The past two months have not been kind to WaltonChain indicated by the 70% drop over the past 90 trading days. Price action had found support at the .886 Fibonacci Retracement level priced at $5.58 in June 2018, but the market has recently broken below the major support level over the past trading day.
Let us continue to analyse market action over the more recent period a little closer to highlight any potential areas of support and resistance.
WTC/USD – SHORT TERM – DAILY CHART
Analysing the market from the short term perspective above, we can see the market had experienced a smaller bullish run during April when price action started from a low of $7.90 on the 6th of April and extended to a high of $19.05 on the 4th of May 2018. This was an overall price increase totalling 145% from low to high.
Price action went on to decline after placing this high until reaching support at the .886 Fibonacci Retracement priced at $5.58 during June. This price level had provided support during July, however, price action was not able to maintain itself above this level and has recently dipped below.
We can see that price action is currently trading at the $4.77 handle and this is currently the 2018 low price.
If the bearish momentum continues within the market, we can expect near term support to be located at the downside 1.618 FIbonacci Extension level priced at $4.00. This is a Fibonacci Extension measured from the entire bearish swing leg witnessed strictly during the month of May. This price level around $4 also coincides with the price lows seen during November 2017. The $4 handle had provided ample support during this time before the major bullish run picked up speed during December 2017.
Alternatively, if the bulls can shape up and re-enter into the market, the nearest level of resistance will be previous support now turned resistance at the .886 Fibonacci Retracement level priced at $5.58. If the bulls can push the market even higher we can expect further resistance to be located at the downside 1.272 Fibonacci Extension level priced at $7.21. The final level of near term resistance is expect at the bearish .382 Fibonacci Retracement level (drawn in black) priced at $8.44.
The technical indicators within the market are heavily favouring the bears at this current moment in time. The RSI is currently trading well below the 50 handle indicating the severe bearish momentum in control within the market. Before we can expect a recover, we anticipate the RSI to head further lower towards oversold conditions before making any form of recovery.
Similarly, the moving average indicators are projecting severe bearish pressure within the market. The 7 day EMA (blue line) is currently trending below the 21 day EMA (purple line) and are pulling away from one another indicating that the bearish pressure is still increasing within the market. If we are to hope for a recovery, we need to see the 7 day EMA make its way toward the 21 day EMA and eventually involve itself in a bullish crossover above the 21 day EMA. This would indicate that the bearish pressure is fading within the market and that the bulls are starting to regain control.