Technical Analysis Competition? This is JUST my thing!
Factom has seen a rough 2 years after dropping from a high above $80 to the current trading level of $2.40. Nevertheless, the team behind Factom is progressing and we can expect some real adoption to begin during 2020.
The cryptocurrency currently sits in the 179th ranking with a small $23 million market cap, however, things can change pretty quickly in crypto so we need not worry!
Factom Long Term Price Analysis
Factom/USD - Weekly CHART -
What has been going on?
Like the majority of cryptocurrencies, Factom has seen a depressing time over the past 2 years after reversing from the 2018 bull run. Factom has dropped from a high of around $80 to the current trading price of around $2.41 - talk about collapse!
Nevertheless, Factom at $2.40 is pretty much a steal as the developers behind the projects continue to chug along. There is still a little room to drop further (which is discussed on the daily charts below) but we can expect things to turn around pretty shortly
Factom Medium-Term price prediction: NEUTRAL
Although Factom may fall slightly lower beneath $2.00, I do not expect it to continue much further beneath this. Therefore, I believe that Factom is pretty much in a neutral market and has a strong potential to reverse at any time. For this market to be considered as bullish, we would need to see Factom rise nad break above the $5.00 level.
Once a bullish run erupts, resistance can be found at $10, $15, $20, $21.23, $25, $33, and $42.54.
To gain a better understanding of what could happen next for Factom, let’s take a quick look at the daily charts
We can see that Factom has recently fallen beneath support at the downside 1.414 Fibonacci Extension level and is trending lower. The next level of strong support is expected at $2.00. If the sellers continue to drive the market beneath $2.00 support can be expected at $1.94 (downside 1.618 Fibonacci Extension level), $1.80 (November 2016 support), $1.50 and $1.33 (July 2016 low).
If the selling continues further beneath here, which I do not expect it to do so, we can expect strong support at $1.00 and $0.7358 (May 2016 Low).
What are the technical indicators reading?
The RSI is well beneath the 50 level which shows that the sellers are in complete control over the market momentum. For a sign that the selling may be reaching completion, look for the RSI to rise and head toward the 50 level.
Both the 100-days and 200-days EMA are trending downward and we would need these to both reverse for a sign of a long term bull trend.