8 July 2021: FORTH Token, the governance token alongside the AMPL protocol has been a significant rise since the lows were printed under $10 USD. At a low of $9.40 back on the 26th of June, it appeared that FORTH could be dead in the water. Since then, it climbed back into its uptrend and has since exploded for a nearly 60% gain in the past week.
Missed the FORTH Train? Its Just Getting Started
After such a steep gain, it would appear that perhaps the time to accumulate and keep stacking FORTH has passed, right? Not even close. Even buying at current price levels (fluctuating between $18 - $22 per token), it would be a 2x return when the token actually returns BACK to where most people bought into it during its initial listings around major exchanges such as Coinbase.
The upside of this governance token is sky-high. With a limited supply of 15 million coins and the tremendous success being shown by AMPL, especially during such a significantly volatile market as we have witnessed the past few months, there is no question that no only does the Ampleforth protocol work successfully, but it can also withstand the major stressors of volatile market conditions.
Chart Overview
There is finally enough data on the 1 Day chart to actually get a sound picture of FORTH. Looking below, circled in black is the point where FORTH managed to finally stay on top of the long downtrend line it had been stuck under since the Coinbase pump and dump. Since then, it successfully back-tested that level and exploded for a nice gain off the lows.
For more in depth analysis, it is still recommended to utilize the 4 hour chart in additional to the 1 Day to ensure you are seeing the most complete picture possible with all the data possible on FORTH. Take a look at the 4Hr chart below:
FORTH showed a ton of momentum after successfully back-testing the long term downtrend line, reaching as high as $26 USD per coin before dropping back to Earth. The upward momentum, however, is still intact as FORTH is pushing higher again. A healthy scenario on FORTH would be a pullback away from this current resistance level of $22 USD to retest the support around $19 USD before a higher move up.
Could FORTH tear through this resistance level like butter? Of course, but it is our recommendation to make your buys just above support rather than just below resistance. Remember though, in no way do we anticipate to make trades (especially day trades). Our goal here is accumulation for the long term. Where does FORTH go from here? Well that depends on a ton of factors including market sentiment, the strength of Bitcoin, confidence in other markets such as stocks, and overall the health of the economy with specific regards to the derivatives market. For FORTH, this is such a young project (alongside AMPL) that prices seen today will be ancient history in a few years.
Take the initiative to set up your own charts, draw your own trendlines, and come to your own conclusions on the best level to continue stacking FORTH.
