- Wanchain has recently released an update that successfully bridges the blockchains of Bitcoin and Ethereum.
- The market is trading at strong support near the $0.31 handle as the bulls continue to battle to defend the level.
- Support moving forward: $0.3110, $0.30, $0.2616, $0.2291, $0.1757, $0.099.
- Resistance moving forward: $0.40, $0.5120, $0.5660, $0.6383, $0.7405, $0.8426
Latest Wanchain News
Wanchain has recently announced their protocol upgrade which will bring Wanchain to version 3.0.
The latest upgrade has successfully created a cross-chain “bridge” between Ethereum and the number 1 ranked cryptocurrency, Bitcoin.
Wanchain is a project that aims to create cross-chain transactions through their blockchain, thereby eliminating the need for middlemen exchanges which are susceptible to hacks and attacks.
Before the 3.0 upgrade, Wanchain was only compatible with the Ethereum blockchain. However, the latest upgrade has brought the project to a new level of interoperability as users can now trade value between both the Ethereum and Bitcoin blockchains.
Users are also able to transact with some ERC-20 tokens such as MKR and DAI, with many more to come in the following weeks.
Wanchain uses smart contracts and Storemen nodes to facilitate the cross-chain transactions through their blockchain, creating a decentralized, trustless and permissionless environment for users to transfer value between the two blockchains.
Previously, blockchains could not communicate with each other without the user utilizing a centralized exchange. This new upgrade brings a new wave of possibilities, and greatly increases the liquidity for compatible coins.
The team has also released a package called WanX for developers to increase the efficiency of cross-chain transactions. Developers now have the opportunity to build dapps and DEXs that can utilize the cross-chain interoperability that Wanchain provides.
Let us take a look at the WAN market and highlight any relevant areas of support and resistance moving forward.
WAN Price Analysis
WAN/USD has seen a 4.78% price drop over the previous 24-hour trading session as the market now trades at a price around $0.3117.
Price action for WAN has seen a significant fall over the past 30 trading days as the market has dropped by a significant 59% over the mentioned period.
The Wanchain project is now ranked in 87th position in terms of market cap rankings and holds a total market cap value of around $32 million.
Analyzing the market from the short-term perspective above, we can see that WAN/USD has now reached long-term support at the downside 1.414 Fibonacci Extension level (drawn in black) priced at $0.3110, highlighted in our last WAN/USD analysis.
This level of support has managed to stall price action from heading lower. However, if the Bitcoin market continues to decline, we can expect WAN/USD to head further lower also.
Trend: Bearish Below $0.30
If the market manages to break below the support at $0.31 and $0.30, we can consider the previous bearish trend to have continued as the market for WAN/USD will then move lower.
For the trend condition to turn bullish, we would first need to see WAN/USD making its way back above the $0.50 handle.
Where is the Support For WAN Located Below $0.30?
If the selling pressure continues to mount and causes price action for WAN/USD to break below the support at $0.31 and $0.30, we can expect immediate further support beneath to be located at the medium-term downside 1.618 Fibonacci Extension level (drawn in green) priced at $0.2616.
If the bears continue to push price action further below the $0.26 handle, then more support beneath can be expected at the short-term downside 1.272 and 1.414 Fibonacci Extension levels (drawn in blue), priced at $0.2291 and $0.1757 respectively.
Further support below this can be expected at the short-term downside 1.618 Fibonacci Extension level (drawn in blue) priced at $0.099.
What If the Buyers Start to Push WAN Above the Current Support?
If the bulls can regroup their effort and begin to push price action higher, we can expect immediate resistance above to be located at the round number handle at $0.40, followed closely by the bearish .236 Fibonacci Retracement level (drawn in orange) priced at $0.5120.
If the bullish momentum persists, significant resistance above will then be located at the previous combined area at the long-term downside 1.272 Fibonacci Extension level (drawn in black) priced at $0.5696, followed by more resistance above at the bearish .382 and .5 Fibonacci Retracement levels (drawn in orange), priced at $0.6383 and $0.7405 respectively.
Conclusion
The latest upgrade to Wanchain is a monumental development in their project as they have successfully managed to bridge the blockchains of the 2 most influential blockchains. Before the upgrade, the blockchains were not able to communicate with each other effectively but now are able to transfer value between each other in a secure and safe way.
However, despite this great achievement, price action is still struggling.
This is largely due to the bearish conditions that the market has been facing over the past few months which had greatly increased during November 2018.
The $0.30 handle will be a crucial support level for the bulls to defend if we would like to prevent WAN from slipping further along its bearish trajectory.
