Categories: CoinsMarket Analysis

Factom Technical Analysis for 01/26/2016 – Important Support/Resistance Levels

The Factom digital currency spiked to a high of 0.0035 today, but there wasn’t sufficient buying momentum to keep price near the high, and the market sold-off rapidly. The 4-hour chart is showing a high-volume Pin candlestick sitting right on the big resistance area at 0.0028. The 0.0028 area acted as resistance on two occasions this month, and it seems that this price level acted as resistance today as well. Pin-bars that form near major pivot zones usually signal market reversals! Will Factom sell-off over the next few days?? It is possible.

The 4-hour chart doesn’t show it, but the 2-hour chart reveals a very clear divergence on the MACD indicator. In fact, the divergence has been building since yesterday. MACD/RSI divergence readings indicate that trend momentum is dissipating.

If there is a sell-off over the next few days, I would expect the 0.0022 area to act as support again. This level has prevented the market from declining on three occasions this month and it’s reasonable to assume that this level will be respected by the market in the near future.

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Disclaimer:  This is not trading/investment advice!

Chart source: https://poloniex.com/exchange#btc_fct

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Traderman

Avid blogger, entrepreneur, and cryptocurrency enthusiast. I love writing about cryptocurrency, NFTs, price analysis, and much more!

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