Wanchain, a distributed ledger that allows for cross-chain transactions and interoperability of multiple chains, has come up with a new upgrade that may change the fate of its coin, WAN.
Wanchain short for the Wide Area Network chain, is a decentralized blockchain interoperability solution that aims to drive blockchain adoption through cross-chain interoperability.
Recently, the network announced that they will be doing a Bridge Node (Storeman) agent upgrade on Oct. 8.
As revealed in an official blog by the platform, the upgrade will make it easier for users to move their XRPL tokens between multiple chains.
While these developments are sure to create some stir in the market for the chain, they could also significantly affect WAN coin’s price going forward.
Upgrade-induced Wanchain social euphoria
Aside from the Bridge Node (Storeman) upgrade, the chain also announced a Wanchain Bridge Upgrade six days ago.
The excitement in the community as well as talk about the project on social media over the last week has fueled social mentions for the project.
Notably, the number of WAN-related mentions on social media has risen by 77% since Oct. 2, however, the sentiment remains neutral.
While social volumes presented a healthy uptick on Oct. 4 and 5, weighted social sentiment highlighted that the sentiment remained neutral with WAN price noting a mere 1.64% price rise over the last 24 hours.
Additionally, a significant drop in the development activity despite the social euphoria was another worrying signal for WAN’s long-term trajectory.
Notably, WAN’s percentage of stablecoin total supply held by whales with more than $5 million also presented a deviation from price.
Whale addresses have seen a notable drop from April and sit close to all-time low levels at press time.
A return of whales to the scene can further indicate HODLer confidence rising for the coin thus acting as a short-term bullish signal.
Wen WAN rally?
At press time, WAN held the 436 rank on CoinMarketCap by market capitalization and traded at $0.191. The coin’s 24-hour trade volumes noted a spike of 82%, standing at $1 million at press time. Spikes in trade volumes over the last 24 hours presented a higher retail interest after the upgrade announcement.
From a technical perspective, WAN price appears to be forming a bullish divergence against the RSI on the daily chart. The next significant resistance level for WAN sits at $0.2. Once bulls are able to push the price above this key resistance the next crucial resistance for WAN would be at $0.23.
Only a decisive close above this level can trigger a bullish breakout to $0.22 or even $0.24. However, if the bullish setup fails the coin can drop to the lower $0.183 mark which has acted as a solid support.