Factom Price Prediction 2018
The insatiable appetite for cryptocurrencies is quite intriguing. Given the vast quantity of cryptocurrencies in circulation, how can anyone keep up, let alone figure out what each one is worth?
So, when I was approached with the task of providing a Factom price prediction for 2018, I was hesitant at first, but definitely up for the challenge. How hard could it be to come up with a FCT forecast?
For starters, there is no fundamental data, tangible asset, or even a government backing up this cryptocurrency, so how does anyone even come up with an FCT price forecast? The answer lies in the Factom coin price chart.
As a seasoned technical analyst with nearly two decades under my belt, I have been analyzing the merits of potential investments by using their price charts. This method of analysis is known as technical analysis, and it is based on the notion that prices trend over time and, therefore, historical data can be used to forecast these trends.
Before I begin my price analysis and provide a forecast for 2018, let me answer some important questions, like: What is Factom Coin?
What Is Factom?
Factom is a data layer added to the Bitcoin blockchain in order keep records, which could range from anything like transactions, tax records, and even your identity. This data is logged onto thousands of computers using the Bitcoin blockchain, which means the data is stored on a decentralized network and therefore cannot be changed or tampered with.
In essence, Factom creates a safe, secure, and honest way of keeping records. Because Factom is built on top of Bitcoin, it can never be shut down.
Factom has been compared to Ethereum, which raises the question: What is the difference?
Factom vs. Ethereum: The Difference
The first difference is pretty obvious, and has been outlined already; the Factom coin (also known as a “Factoid”) operates as a data layer added onto the Bitcoin blockchain, while Ethereum runs on the Ether blockchain.
Factom binds itself to the Bitcoin blockchain using hash rates, which are essentially fixed alphanumeric strings. This results in data that is stored using much less space, which means it uses less energy, and finally translates into fewer costs.
The other differences are quite minute, and they involve physical aspects, like price and market cap. For instance, the Factom market cap is currently around $186.5 million, while the Ethereum market cap is nearer to $35.0 billion.
Now that we have these basic fundamental details out of the way, let’s get to the meat and potatoes.
Factom Price Chart
The following Factom price chart illustrates the constructive price action that has defined the bullish trend in this cryptocurrency.
Chart courtesy of TradingView.com
The two distinct waves highlighted on the price chart are the pillars of constructive price action.
The waves highlighted in green are impulse waves. An impulse wave captures the period in a bullish trend when an asset stages a significant move toward higher prices. This wave will usually persist until internal metrics suggest that it has become overbought and stretched, meaning that the move toward higher prices has become exhausted.
The waves highlighted in purple are consolidation waves. A consolidation wave captures the period in a bullish trend when the asset’s price refrains from staging an advance and, instead, a correction occurs.
The correction in price functions to alleviate any overbought conditions that were created in the wave that preceded it, so a new advancing impulse can be created. In essence, the consolidation wave maintains the health of a trend by preventing it from burning out.
These waves are dependent on one another and, when they work together in an alternating fashion, they are responsible for creating and sustaining a trend.
The Factom price chart clearly illustrates that, every time this cryptocurrency exited a consolidation wave, an impulse wave followed. Therefore, in order for a new impulse wave to develop, the FCT price needs to move above $30.00, which would then imply that higher prices are in development.
The moving average convergence/divergence (MACD) indicator located in the lower panel has been instrumental in confirming which wave is in development.
MACD is a momentum indicator that uses the crossing of a signal line to distinguish whether bullish or bearish momentum is influencing the price action. This indicator is very significant because, in order for the price to stage an advance or a decline, the applicable momentum is required, and the price action on the FCT price chart is a testament to this.
In April of this year, a bullish MACD cross was generated, suggesting that bullish momentum was influencing the price action, which paved the path of least resistance toward higher prices. This was the same month that this cryptocurrency exited the consolidation wave and higher FCT coin prices prevailed, courtesy of an impulse wave.
Similar circumstances occurred when a bearish MACD cross was generated. This indication suggested that bearish momentum was influencing the price action, and it correctly confirmed that Factom had completed its advance and that a consolidation wave was in development.
I am waiting for a break above $30.00 to suggest that an impulse wave is in development, which will be confirmed with a bullish MACD cross. The MACD signal lines are currently converging, increasing the possibility that this event will occur in the not-too-distant future.
FCT Coin Potential Price Objective
Let’s assume that the criteria I seek have been met and an impulse wave is now in development.
The great thing about constructive price action is that, aside from just suggesting that higher prices are likely via an impulse wave, it can also be used to create a potential price objective.
In order to create this price objective, I will have to use a method called a parabolic extension. This method involves taking the log-based length of the impulse wave and extrapolating that value from the base of the consolidation wave still in development.
The previous impulse waves are all of equal length and, if I assume that the next one will carry this exact characteristic, it projects a Factom future price of $500.00, representing a potential return of around 2,600%. This forecast may seem outlandish, but it is actually in line with the returns experienced by FCT coin and other cryptocurrencies.
How to Buy Factom Coin
Buying Factom—and cryptocurrencies, in general—takes a number of steps. The first thing one needs is a Factom wallet, in order to store and facilitate the transactions.
Factom coins can then be bought on one the following exchanges: Shapeshift, Poloniex, or Bittrex.
Let me point out that Factom is classified as an “altcoin,” which means you will first need to purchase a cryptocurrency like Ethereum or Bitcoin and then exchange that for a Factom coin. It pays to see how these cryptocurrencies have performed versus Factom, to gauge Factom’s value.
Cryptocurrency mining is the process in which computing power is used to create and maintain a decentralized network. These computers are used to verify and record the transactions that occur on the network. In return, the miners who provide their computing power receive fractions of a coin as a reward.
Most cryptocurrencies can be mined, but this is one characteristic that causes Factom to stand out from the rest: It cannot be mined.
I have outlined two key triggers that I am watching on the Factom price chart. These triggers will determine when the FCT coin price is set to appreciate. If the frenzy surrounding cryptocurrencies continues to garner public participation, I would not be surprised to see the FCT price hit $500.00, which is my Factom price prediction for 2018.