PotCoin Price Forecast: When Marijuana and Cryptocurrency Trends Meet

PotCoin Price Forecast
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PotCoin: The Amalgamation of Two Hot and Sought-After Sectors

2017 is going to be the year to be remembered. It was a great time to be an investor. The markets were tranquil as low volatility made a name for itself and the major market indices continued to climb steadily toward higher prices.

2017 was the year when the market recorded its longest stretch without a significant correction. It also marked the year when speculative fever ran high in two highly touted sectors: cryptocurrencies and marijuana stocks. Anyone who was fortunate enough to participate in these two asset classes came out with handsome profits.

So is it not appropriate that someone has already come up with the notion of amalgamating these two hot sectors into one, creating a cryptocurrency called PotCoin (POT) that caters to the marijuana sector?

What Is PotCoin?

PotCoin is a decentralized peer-to-peer cryptocurrency that exists with the aim of becoming the standard form of payment for the legalized cannabis industry.

The POT coin is not a new cryptocurrency. It was established in 2014 and it was forked from Litecoin. Therefore, it is technically nearly identical to Litecoin, with key differences including a shorter block generation time, a quicker halving schedule, and an increased maximum number of coins available.

Why would anyone consider PotCoin? Well, the answer is simple: marijuana is still classified as an illegal drug on a federal level in the United States and, although some states have gone forward and legalized cannabis, banks cannot process any of the payments because they are regulated by federal statutes.

This leaves a void in our current society as we continue to migrate toward a cashless future. PotCoin fills that void by providing a means of processing payments using a cryptocurrency.

PotCoin Price Forecast

As a technical analyst, forecasting the next direction that a cryptocurrency is likely going to take is my forte because this asset class has no intrinsic value. The only way to determine the merits of this asset class is to analyze the price action that is generated on the price chart.

From a simple standpoint, the predominant trend in the PotCoin cryptocurrency since 2016 has been bullish, and the following price chart is a testament to this notion.

Chart courtesy of TradingView.com

After PotCoin’s initial coin offering (ICO), the coin sold off as the entire sector went through a correction. This correction created a very large base and, in September 2016, the POT coin price found its footing and started to stage an advance toward higher prices.

This advance contained the quintessential characteristic that defines all bullish trends, which is a sequence containing a series of higher highs and higher lows. Connecting the series of lows since the POT coin began its advance produces an uptrend line.

At the moment, this metric is providing a significant level of price support. Every time this uptrend line has been tested, PotCoin has ceased further selling and higher prices have prevailed.

On a relative basis, each sustained advance off of the trend line toward higher prices has coincided with a bullish signal from the moving average convergence/divergence (MACD) indicator.

MACD is a very significant momentum indicator that uses the crossing of a signal line in order to determine whether bullish or bearish momentum is influencing the price action. This indicator is very influential because a sustained move in either direction cannot occur unless the applicable momentum is supporting it.

In April 2017, a bullish MACD cross was generated and the POT coin price appreciated as anticipated. This move toward higher PotCoin prices coincided with the entire cryptocurrency complex as a rising tide was lifting all boats.

In September 2017, a bearish MACD cross was generated, and PotCoin corrected to test the uptrend line. This correction didn’t last long, because, in November, a bullish cross was generated and an epic move toward higher prices followed.

In January 2018, a bearish cross was generated and the POT coin price has been in correction ever since. Until a bullish cross is created, I can only assume that a correction is still in play, and PotCoin will not be able to sustain a move toward higher prices until a bullish signal is created.

The good news is that PotCoin prices are still above the uptrend line. As long as they remain above that line, I can only assume that the bullish trend is intact and that, with time, higher prices will prevail.

Analyst Take

The predominant trend in PotCoin is bullish, and it will remain bullish as long as the POT coin continues to trade above a very important level of price support. I am waiting on the MACD indicator as a catalyst to inform me when the next accelerated move toward higher prices is in development.