PotCoin (POT) has advanced from $0.0066 above $0.014 since the beginning of December, and the current price stands around $0.0130. PotCoin is a digital cryptocurrency solution for the global cannabis industry, but there is still a level of uncertainty surrounding this project.
Fundamental analysis: Digital cryptocurrency solution for the global cannabis industry
PotCoin is a digital cryptocurrency solution for the global cannabis industry that allows cannabis enthusiasts to interact and transact mutually. Its creators wanted to solve banking problems for people looking to transact in legal marijuana since banks cannot legally conduct pot-related business.
This project was launched in the 2014 year while PotCoin started trading online thanks to the exposure garnered by Denis Rodman. He wore a potcoin.com shirt on his trip to North Korea, and the PotCoin re-enter the media spotlight thanks to this event.
All major cryptocurrencies are advancing in the last several days; Bitcoin has increased above $34000 (the current price stands around $31000), and this situation also supports PotCoin’s price. Fund managers say that this surge in demand came from institutional investors and hedge funds.
“The speed at which professional investors are moving into crypto right now is remarkable,” said Hunter Horsley, Co-founder and Chief Executive Officer of Bitwise.
Some cryptocurrency analysts say that the cryptocurrency market has entered a bubble and that the correction phase could be around the corner. 2020 has been an impressive year for the cryptocurrency market, but there is no sign of the bear market for now.
PotCoin is one of the cryptocurrencies that could advance even more in the ongoing bull market, but there is still a level of uncertainty. PotCoin project also faces competition from other similar popular marijuana-based cryptocurrencies like CannabisCoin, DopeCoin, HempCoin, and CannaCoin.
My opinion is that this is a very risky cryptocurrency, and if you decide to trade PotCoin this January, you should always use a “stop-loss” order.
Technical analysis: Bears are focused on breaking the support level at $0.0120
When trading PotCoin, you should have in mind that the price could also weaken in the upcoming days. The price of PotCoin is correlated with the price of Bitcoin, and if Bitcoin enters the correction phase, that will have a negative influence on PotCoin.
“The price of Bitcoin is totally manipulated by a bunch of people, and it doesn’t have any fundamental value. We are close to the point where the hyperbolic bubble is going to go bust,” said economics professor Nouriel Roubini.
The current resistance levels are $0.0140, $0.0150, and $0.0160; $0.0120 and $0.010 represent the current support levels. If the price jumps above $0.0140, it would be a signal to trade PotCoin, and we have the open way to $0.0150 or even $0.0160.
On the other side, if the price falls below $0.0120, it would be a firm “sell” signal, and we have the open way to $0.010.
PotCoin is one of the earliest cryptocurrencies for the marijuana industry, which you can send via the internet. Its creators wanted to solve banking problems for people looking to transact in legal marijuana since banks cannot legally conduct pot-related business. PotCoin price remains in a bull market, but if the price falls below $0.0120, it would be a firm “sell” signal, and the next target could be around $0.010.
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