USDT sitting below key 200-Day MA

You would be forgiven for having missed this specific crypto currency instrument amongst the myriad of coins released in the past year. However, it brings with it a fundamental change to the way that privacy is implemented on the blockchain and this has a select market taking a second look at the micro-coin.

In particular, the ForestPlus founders have introduced a system whereby the transactional information available on the blockchain is limited and packaged secretly and then spread randomly throughout the chain using a forest regression which is where it takes its name from. Subsequently, it introduces a level of transaction privacy that most of the larger competitors do not currently provide.

The FORESTPLUS/USDT coin has been a net beneficiary of this increased interest and the past few weeks has seen the crypto currency rally to test resistance between the 4 – 4.5 cent level before pulling back to relieve pressure upon the RSI’s overbought status. In fact, the daily timeframe currently shows price action sitting just under the 200-period moving average which is a critical inflection point for this instrument.

Therefore, crypto traders are closely watching for a price spike above the 2.7 cent mark to signal a potential breakout to the upside. It would seem likely that given the increased volume and interest in the coin that we could see another test of these key levels in the coming day. It is encouraging that the RSI has now retreated out of overbought and into neutral territory and that price action appears to have also formed some support around the 61.8% retracement level.

Subsequently, the case for a bullish move would appear to possess some technical support. However it’s important to note that the lack of historical trading data means that beyond the 4.5 cent price target there is little to predict the next valid resistance level.

Also, from a fundamental perspective ForestPlus lacks widespread adoption and their use case remains speculative at best. Until there is significant adoption of their technology, volatility will remain, and strong price swings will occur regularly.

Ultimately, the technical factors presently outweigh the fundamental concerns I have for their long-term adoption and uptake. The next few days will be key for ForestPlus and whether price action can break through the 200-day EMA and challenge the 4-cent handle.