FunFair did not really have a ‘fun’ year of trading during 2019 after dropping by a small 20% throughout the year. It had opened 2019 at a price of $0.0041 and went on to close the year at a price of around $0.0033.
Although the year price drop was pretty marginal considering the price collapse of other altcoins, it still created a fresh all-time low during the year. The cryptocurrency witnessed around a 100% price increase from the February 2019 low to the June 2019 higher, however, after reaching the high, FUN rolled over and dropped by 68% to place the all-time low at around $0.0025.
The good news is that it did manage to recover slightly throughout the winter which allowed it to close $0.0033 and it has not dropped to these lows ever since.
On a positive note, the team over at FunFair is just as active as they have ever been. In fact, some statistics (covered below) actually show that the team is more active than ever. In addition to this, there are further stats that show the daily active users for FUN are increasing which could be a sign that the casinos are starting to gain some traction.
During 2020, we can expect FunFair to continue with this type of growth as they continue to expand their user base further. The team is consistently working on “games” for their casino’s to use and are streamlining their sign-up and KYC processes to make it easier in certain regions of the world. Furthermore, they are also focused on improving their payment processes and are attending major conferences in the hopes to onboard new casino owners.
For the reasons stated above, and more discussed below, I believe that FUN has the potential to surge by a total of 217% in 2020 to reach my target price of $0.012 at some point during the year. Bear in mind that FUN has already started moving and up by a total of 41% in 2020 alone so this would bring the total 2020 price increase up to around 338% if FUN hits my target.
In this article, I’ll firstly cover a range of topics that I believe will influence FUN in reaching my $0.012 target during 2020 and then analyze FUN on the daily chart to highlight some areas of resistance on the way toward the target.
What Is FunFair?
FunFair is an Ethereum-based casino platform that provides licenses to online casino operators. It is basically a white label casino in which you can take out a license to operate your own online casino using FunFair’s games and technology.
It is important to recognize that it is NOT a casino itself and is, instead, an underlying gaming technology to allow online casino operators to start a blockchain-based casino.
FunFair started with its ICO in June 2017 in which they raised $26 million and was co-founded by Jez San who has prior experience in the online gaming space. You might actually know him from co-founding PKR - the online 3D poker room. The other founders are Jeremy Longley (another PKR co-founder) and Oliver Hopton (a developer who spent 10 years at PKR).
The entire idea of bringing online Casinos to the blockchain is to lower the barriers for entry for casino operators and to make the online gaming industry much more transparent for players through the power of smart contracts and blockchain technology.
To find out more about the history and technology behind FunFair, take a look at this article.
What To Look For In 2020
Increasing KYC Conversions
One of the main goals for the first quarter of 2020 is the improvement of the KYC process. This is an important feature from FunFair as it allows users to access multiple online FunFair based casinos through just one KYC process in FunPass.
To improve the process, they intend to reduce the number of fields required as well as introduce a document scanning technology. They currently use Truiloo as their KYC online verification system, however, in markets where Truiloo has a lower success rate they will be testing document scanning as the primary means of undertaking KYC.
The idea of streamlining the KYC process is to make it easier for users to get started and, in turn, increase the number of users on the FunFair platform across all casinos.
Streamlining Payments
Every user needs FUN to place bets on the FunFair casinos and the team acknowledges that they need to make the payments process easier.
Firstly, the will be integrating Uniswap to make it easier for users to convert their Ethereum into FUN. This is slated to make conversions into fun cheaper and easier for its users.
They had previously announced a partnership with Changelly to integrate their service directly into the FunFair wallet. This allows users to directly transfer BTC and other cryptocurrencies into FUN without the hassle of having to leave to swap their cryptocurrency on an exchange.
Another payment that is required for users particularly is the GAS payment needed to open a gaming session. FunFair is intending to completely scrap this requirement as they believe that GAS payments make things too confusing.
Lastly, they aim to find a partner for FIAT to FUN conversions and are hoping to have this integrated by the end of Q2 2020.
New Games On The Horizon
The games on FunFair casinos are the most important feature for the platform and it will be imperative for them to continue to release games in which users are interested in.
They started by releasing their first game in 2020 known as Fun Mountain - a rendition of snakes and ladders with a mining-themed twist! Gamers are warming to the game as it has already become the third-highest game in terms of wagers. You can play this at CasinoFair.
Another great thing to see is how the team is marketing upcoming games. For example, they teased a new game with a Twitter competition to allow users to win 500 FUN. This type of marketing helps to keeps the interest and buzz alive whilst they continue to develop and release more games.
Are Statistics Showing Developmental Activity Is Surging With Daily Active Addresses?
Data from Santiment shows that the daily active addresses are on the rise. This is a great sign for FUN holders as it shows that the casinos that are using FUN might actually be starting to gain some real solid traction. Remember, FUN is required for all bets within the online casinos and is also required by casino operators to keep operations running.
Additional data from Santiment shows that the development activity for the project has also reached extreme highs, proving that the team continues to remain focused and dedicated to improving their platform.
FunFair (FUN) Price Analysis
LONG TERM - DAILY CHART
What Has Been Going On?
Taking a look at the long term daily chart above, we can clearly see the whipsaw like action that FUN was trading within during 2019. The cryptocurrency did witness a great Q1 and Q2 of 2019 as the cryptocurrency climbed to a high of around $0.007. However, after reaching this high, things turned around and quickly turned sour for FUN.
From June 2019 through August 2019, we can see FUN dropping by a total of 68% as it plummeted into the fresh all-time lows at around $0.0021. Luckily, FUN found support from here as it started to rebound and slowly grind higher.
The cryptocurrency was never able to climb above the 200-days EMA during 2019 and was rejected by this resistance after an attempt to climb above in December 2019.
2020 started off on a bearish footing as it dropped into support at around $0.0027. However, things started to pick up as February began trading. The cryptocurrency managed to break above a long term 9-month old descending trend line and continued to finally break back above the 200-days EMA for the first time since May 2018.
The cryptocurrency continued to grind higher to reach the February 2020 high of $0.0040 before dropping slightly.
Are We Bullish Or Bearish (as of February 2020)?
As of February 2020, the market is considered to be within a neutral trading condition. Even though it managed to break above the 200-days EMA, it still needs to climb above the December and October 2019 highs to turn bullish in the short term. A longer termed bullish trend would be confirmed if FUN was able to break above $0.0055.
If fun was to drop back beneath $0.003, the market would turn bearish. In this case, we could expect additional support at $0.0027 and $0.0025. Beneath this, support lies at $0.0024 and $0.00218. If we were to break beneath $0.0021 we could say goodbye to my 2020 price prediction and expect FUN to create some further fresh all-time lows.
Where Is The Resistance On The Way Up TO $0.012?
On the way up toward the 2020 target of $0.0012, the first few levels of resistance lie at $0.0040, $0.0043 (October 2019 high), and $0.005. Above this, resistance then lies at $0.0055 which is provided by a long term bearish .236 Fibonacci Retracement level, measured from the May 2018 high to the all-time low seen in August 2019.
If the bulls can continue to climb above $0.0055, resistance is then expected at $0.0059, $0.0065, and $0.0069. If they can continue to drive above $0.007, higher resistance lies at $0.0075 (bearish .382 Fib Retracement), $0.0080 (1.272 Fib Extension), $0.0084 (1.414 Fib Extension), and $0.0091 (bearish .5 Fib Retracement).
If the bulls can break $0.010, they will need to tackle resistance at $0.0107 (bearish .618 Fib Retracement) and $0.0115 before being clear to make an attempt at the 2020 target of $0.012.
Conclusion
FunFair might have seen a sideways movement of market action during 2019 but they certainly did not stop on the development side! We can expect this to continue through 2020 as the pace of their developmental activity increases significantly. 2020 will all be about onboarding new casino owners and growing the user base of casino users - all who will be using FUN!
For the reasons stated, I do believe FUN will be able to reach the $0.012 target level and could even possibly surge further beyond here.
