The Factom digital token has been on a tear since the the 5th of March, hitting an all-time high of 0.008692 today, but the charts are starting to show that the market may be in overbought territory. For starters, the big support level at 0.0073 – which propped up the market four times – was broken today on significant volume. If price retraces back up to 0.0073 over the next few days, this level is very likely to now act as resistance, which may set the stage for another major sell-off! The bull market will only continue if there is enough buying power to propel price above 0.0073 again! Not only did price break bellow 0.0073, but the market also broke the trend line!
Price has also managed to close underneath the 0.0066 pivot area today. This price level acted as resistance several times between the 6th & 7th, and then turned into support on the 8th. If this area now turns into resistance, another sell-off may be imminent!
If Factom continues to sell-off over the next several days, the next big pivot that will likely come into play is 0.0052. Between the 6th and 8th, the 0.0052 level provided support on five occasions. Due to the extensive history of this area, It is very likely that 0.0052 will act as support in the future.
Disclaimer: This is not trading/investment advice!
Chart Source: https://poloniex.com/exchange#btc_fct
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