Factom’s (FCT) Bullish Month Halted by 35% Sell-Off in 12 Hours; Round Two Ahead?
Factom (FCT) appears to be paying the price for its recent foray outwith market bounds after the coin price sunk 35% over twelve hours on Tuesday. The drop compounds a near week-long reversal for FCT in which the coin lost over 55% of its value.
Factom’s Bullish Month
Factom (FCT) felt a miraculous 391% increase to its market value during the otherwise bearish months of November and December. The surge was helped by a 39,900% increase to trade volumes, all processed via the FCT/BTC pair – the only one listed for Factom among prominent exchanges.
The surge coincided with the adoption of Factom’s Harmony blockchain-as-a-service product by Equator – a prominent mortgage service provider.
Adding to the joy for Factom investors was the news that Chinese online video service, Yooya, would be using Factom’s tech to offer both private and public blockchain services on its platform.
The Yooya news came right at the start of December, just in time to pump the FCT valuation a few more bucks before the peak, and subsequent plunge, on December 6th.
From a peak of $18.57 last Thursday – a near seven month high at the time – the dollar valuation of FCT fell to $8.29 in the five days leading up to December 11th.
That’s a 55% drop in less than seven days, and it only grew worse as the week went on. Today, FCT fell 35% in the twelve hours which made up the Asian session, as BTC traders took advantage of BTC’s current lows and cashed out their FCT gains.
The subsequent rebound to the $10.00 range just a few hours later suggests the volatility is not yet over for Factom – a suspicion given some legs by the sudden, large fluctuations in the coin’s trade volume.
Round Two Ahead for FCT/BTC?
Trade volumes for FCT sunk from $3.7 million to $1.3 million on Tuesday as the coin sunk to the aforementioned $8 range.
Only minutes later, a very similar chunk of change entered FCT’s books and returned trade volumes to the $4 million range. This coincided with another pump in the coin price to the $10 range, and it now looks like Factom might be getting played by just a few heavy hands.
Given the 20% rebound in just a few hours today, the likelihood of FCT remaining where it is seems slim. Up or down, but definitely not stable. Get onto Upbit, Poloniex or Bittrex to take advantage of the FCT/BTC pair’s volatility.
Factom’s recent surge drew eyes to the project for the first time in what seems like a while. Factom was highly regarded when first launched in 2015, but fell out of the media spotlight after being drowned out by the hype of 2017-2018’s ICO period.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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