Factom, the distributed record keeping system, has experienced a difficult time this year in terms of value against the USD. The cryptocurrency is currently down around 80% from the highs set out in January, but has recently shown some signs of a potential price reversal.
Factom, at the time of writing, is currently ranked at 100 and is being trading at a price of $16.56 with a total market cap value of $144.79 million. Over the past 24 hours the coin has seen a 4.5% increase in price.
As Factoids, the cryptocurrency behind Factom, is currently so far away from it’s all time high price of $127.81, it is pretty safe to say that the cryptocurrency has a lot of upside potential right now. Peter Kirby launched Factom in 2014 with the hopes to secure millions of records in a single hash on the blockchain. Since launching the team has come a long way and has recently launched a testnet version of their proof of concept.
With influential investors like Tim Draper and valuable grants provided from the likes of the Bill and Melinda Gates foundation, it is safe to assume that this cryptocurrency has a great deal of potential to have a bright future ahead of itself as development progresses.
Factom is setting a small foundation for a good bullish month in June, but can it gather the momentum?
Long Term Overview
Analysing the market from a long term perspective, we can see that price action has experienced significant downward pressure throughout the course of this year. Currently, price has found some support at a downside 1.272 Fibonacci Extension, at a price of $15.12, taken from the initial swing leg down in January (price $90 – $31.44).
April proved to be a bullish month for most cryptocurrencies, including Factom as price managed to rise to a price of $33.98. However, May has proven to provide fresh new multi-month lows as prices dipped to $11.79.
If prices can hold above the 1.272 Fibonacci Extension level of $15.12 and continue past near term resistance at the $22 handle, then we could expect price action to continue upward and eventually retest the highs set out in April.
Alternatively, in the long term, if price action manages to create fresh lows below $11.79 then we could see prices dipping as low as $10.60, a level not seen since November 2017.
June will prove to be a telling month in general for all cryptocurrencies and the situation with Factom is not different. If prices manage to garner enough bullish momentum we could see a positive few months for FCT against the USD.
Short Term Overview
From a short term perspective, FCT is showing some promising signs. Although April was a bullish month for FCT it still did not manage to test the high set out in March at price $38.49. Could this month create enough momentum to begin a bullish run for Factom that could create new multi-month highs?
From the chart above, we can see that Factom has found some support from a downside 1.272 Fibonacci Extension target located at price $13.44. This extension was taken from the highs of May, $32.09, to the mid-month May swing low of $17.43.
Price action is currently showing positive signs for the bulls. Price is currently trading above the 7-day EMA. If the 7-day EMA and the 21-day EMA go on to cross above one another then we may expect some more bullish momentum.
In the case of a bullish run, the first level of resistance for Factom is marked at $22.74. If price can successfully break and close above this level then we could expect the bulls to push price up to retest the highs set out in May at a price of $32.16.
The RSI technical indicator is also showing signs of some positive momentum for the bulls. RSI has battled its way on up toward the 50 level, if it can hold above 50 then we can expect the bullish traders within the market to gather some momentum. RSI attempted to break above above the 50 level last week but failed to hold, if it manages to hold above 50 then FCT may experience a much needed spell of positive momentum.
Factom is currently in a pivotal month with regards to its price right now. If June turns out to be another bearish month for FCT then the second half of 2018 would be looking bleak for holders in terms of price.
The next few trading days will tell us if this recent bullish price action has enough momentum to continue. However, prices seem to be a fair value right now for investors relative to it’s all time high price.