Waltonchain has suffered a price decrease of 7.42% over the past 24 hours of trading. The cryptocurrency is currently trading hands at a value of $6.85, and has witnessed a small price hike of 2.16% over the past 7 trading days.
Waltonchain is a Chinese-based blockchain company founded by Xu Fangcheng and intends to use RFID technology to help manage supply chains more efficiently. The cryptocurrency has derived its name from Charlie Walton, the inventor of the RFID chips.
The cryptocurrency behind Waltonchain is known as Waltoncoin (WTC). Waltoncoin is used as payments systems to build adaptable sub-chains for companies on the main Waltonchain blockchain. The sub-chains can be adapted in its application for the specific use of the chain and its consensus algorithm can be chosen between either PoW or PoS..
The combination of RFID and blockchain will allow manufacturers and consumers to track their products through the entire supply line. This would greatly reduce the volume of counterfeit products that flood the market every year. RFID technology has been around for a long time but has only just become affordable enough to be implemented in supply chains. For a quick overview on the importance of RFID we recommend this Forbes article.
Waltonchain is an exciting project with many facets to understand. For a more in-depth overview of Waltonchain, we recommend this our guide to Waltonchain.
Waltonchain is currently ranked 51st in terms of overall market cap across the entire industry, with a market cap value of $274 million. This is $290 million lower than the market cap high of $564 seen on May 4, 2018. Waltonchain has experienced a sharp price drop of 22% over the past 30 trading days.
Let us continue to analyze price action for Waltonchain over the long term.
Price Analysis
WTC/USD – LONG TERM – DAILY CHART
https://www.tradingview.com/x/CDY99Uaq/
Analyzing the market from the long-term perspective above, we can see that the market had experienced a significant bullish run starting from a low of $0.53 on September 1, 2017 and rising to an all-time high of $47.28 on January 28, 2018. This was an epic price increase of over 6,000% from low to high.
After placing the all-time high in January, the market went on to fall during February, originally finding support at the .618 Fibonacci Retracement priced at $18.17. This is a Fibonacci Retracement measured from the entire bullish run mentioned above.
The market continued to fall through the .618 Fibonacci Retracement in March, and subsequently fell below the 100-day moving average until it found support at the .786 Fibonacci Retracement priced at $10.27.
During June 2018, price action continued to fall through the .786 Fibonacci Retracement to find support at the .886 Fibonacci Retracement priced at $5.58. This area of support was significantly bolstered due to the price lows of December 2017 correlating in this area.
Let us continue to analyze price action over the more recent period to highlight any potential support and resistance zones.
WTC/USD – SHORT TERM – DAILY CHART
https://www.tradingview.com/x/CBliqTGl/
Analyzing the market at a closer perspective, we can see that WTC had experienced a bullish run during April when price action rose from a low of $7.90 on April 6, 2018 and extended to a high of $19.05 on May 4, 2018. This was a price increase of over 140% from low to high.
After the market placed this high, price action went on to fall during May and eventually in June, dropped below the initial starting level of the bullish run in April. Price action continued to fall until it found support at the long-term .886 Fibonacci Retracement priced at $5.58. We can notice that price action is currently trading at support around the 1.272 Fibonacci Extension level priced at $7.21.
If the bullish momentum can push the market above the 1.272 Fibonacci Extension, then we expect near-term resistance to come in at the short-term bearish .382 FIbonacci Retracement priced at $8.44. This is a bearish Fibonacci Retracement measured from the high of $13.37 seen on June 7, 2018 to the low of $5.47 seen on June 29, 2018.
If the market can push price action further above the bearish .382 Fibonacci Retracement, then further significant resistance can be found at the bearish .618 Fibonacci Retracement level priced at $10.31. This level of resistance is significantly bolstered by the long-term .786 Fibonacci Retracement priced in the same area. Before being able to reach this $10.31 price handle, the market will firstly need to overcome resistance at the 100-day moving average which is currently hovering around the $10 handle.
Alternatively, if the bearish momentum picks up within the market once again, then we can expect near-term support to be located at the long-term .886 Fibonacci Retracement level priced at $5.58.
The technical indicators within the market are starting to show favor toward the bulls at this moment in time. The RSI is currently trading slightly above the 50 handle. The break above 50 indicates that the bullish momentum within the market is building. So long as RSI can maintain a level above 50, we can expect this market to continue to make gains.
Similarly, the moving averages are providing favor toward the bulls as the 7-day EMA and the 21-day EMA are poised for a bullish crossover. If the 7-day EMA manages to cross above the 21-day EMA and pull away from it, we can expect the bullish pressure within the market to grow.
Conclusion
Waltonchain is a very ambitious project; in aiming to improve the supply chain system, the Waltonchain ecosystem will require years of testing and research ahead before we see it being implemented into the majority of projects.
However, the founder Xu Fangcheng brings significant excitement to the project through his apparel company Fujan Septwolves Industry which is currently worth around $7.3 billion. If this is the first company to use the Waltonchain system, it will be a promising start.
Related: Why I Think Waltonchain is A Smart Long-Term Investment (Opinion)
