Factom is a project which applies blockchain technology to provide data integrity and trust solutions. The project has strong support with well-known investors such as Tim Draper of Draper Associates and the Bill & Melinda Gates Foundation.
Over the past month, the project has been surging despite the most bearish market conditions of 2018. The project increased from support around $4.15 to above $19, an over 300% increase. With strong buyer momentum and consecutive huge increases, it was difficult to assess when the surge might come to an end.
The appreciation may finally be reaching its conclusion as Factom undergoes a significant reversal. The price currently trades around $12.15 after forming what looks like a lower low and a lower high.
The price has significantly decreased today after starting the day at $13.80. If the price drops below $11.80 which is close to where it currently trades, a lower low will be form, and future movements are far more likely to be bearish from that point.
Both the MACD and RSI are beginning to decrease showing momentum shifting towards the side of sellers. The MACD is also crossing its signal line to the downside, a bearish signal.
This reversal is likely triggering those who have had gains over the past month to sell their holding and record profit. Such selling typically triggers further decreases in price and more traders rushing to sell their holdings acting as a reinforcing cycle.
Key Takeaways:
- After a huge outperformance over the space of a month which saw Factom increase over 300%, the project looks likely to be now reversing.
- The project has formed a lower low and lower high. A drop below $11.80 would for another lower low and lead to a more bearish outlook.
- Traders are likely rushing to sell their holdings to record profit from the months movements with this triggering even further decreases and selling.
