A Price Forecast for PotCoin
Among investors 2017 will forever remain a memorable year. The markets experienced low volatility but this did not stop the major indices from reaching higher levels. It was also the year that the market witnessed a long stretch of appreciation and no significant correction. 2017 will also be the year that saw speculative fever in two sectors namely marijuana and virtual currencies reach fever pitch. The investors who took part in the trading of these asset classes were rewarded handsomely. It is thus not surprising that a virtual currency known as PotCoin (POT) has been created and thereby effectively managed to amalgamate two hot industries into one.
As a virtual currency PotCoin exists with the sole purpose of offering a standard means of payment in the legalized cannabis sector. The digital currency was established four years ago and is a Litecoin fork making it technically identical. Key differences exist however and this includes faster halving schedule and shorter time for block generation. Additionally, the maximum number of digital coins available have also been increased.
Some of the reasons that make people turn to Potcoin include the fact that on a federal government level cannabis is still an illegal drug in the U.S. Despite the fact that cannabis has been legalized in some states banks and other financial institutions are unable to process payments relating to marijuana since they are under federal oversight. There is thus a void in the current financial system which has been filled by virtual currencies and in this case PotCoin.
Without any intrinsic value it is impossible to apply fundamental analysis in trying to forecast what future direction a virtual currency will take. This means that it is up technical analysts to use price action in order to analyze cryptocurrencies. Since 2016 PotCoin’s predominant trend has been bullish.
Initial coin offering
Following the initial coin offering of PotCoin, there was a sell off especially since it came when the entire sector was experiencing a correction. After the correction the base of PotCoin grew and two years ago the virtual currency starting appreciating in price. This upward trend was characterized by higher lows and higher highs and this has resulted in a solid price support line which has seen higher prices being recorded every time there is a testing of the line.
Every time prices of PotCoin have moved higher has coincided with the MACD indicator signaling a bullish sentiment. As a momentum indicator the MACD can betray whether price action is being influenced by a bearish or bullish momentum. It is thus impossible for a sustained move to occur in either direction without the support of applicable momentum.
Last year in April there was a bullish signal from the MACD and the price of PotCoin went up and this came at a time when virtual currencies were appreciating. Five months later there was a bearish signal from the MACD and consequently there was a correction in the price of PotCoin. A bearish signal was also sent out at the beginning of the year and since then the price of PotCoin has been in a correctional mode. Till there is a bullish signal lower prices of PotCoin are to be expected.