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.
Disclaimer: This is not trading/investment advice!
Chart source: https://poloniex.com/exchange#btc_fct
If you liked this article follow us on twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.
Bitcoin is bleeding. The world's largest cryptocurrency plunged to $66,997 on Tuesday, shedding over $6,750…
Ripple is not pausing for breath. The company has brought its dollar-pegged stablecoin, $RLUSD, to…
Bitwise Asset Management has just made its first move into tokenized funds, and it comes…
Binance just made a move that blurs the line between crypto exchange and traditional brokerage…
NEAR Protocol has had a month that most blockchain projects would stretch across an entire…
Something is becoming increasingly clear about Chainlink, the integrations are not slowing down. The protocol…