Golem (GNT) is up 7% for the day while the rest of the market bleeds. Normally, this would not be a big deal but the chart above for GNT/USD on the weekly time frame shows us exactly why it is a big deal this time. RSI for GNT/USD peaked around January 2018 as shown on the chart. Since then, it has been on a steady decline trading in a falling wedge. After an extensive correction of nine months, RSI for GNT/USD has finally broken out of this falling wedge to the upside. This means that Golem (GNT) is one heartbeat away from breaking the downtrend against the US Dollar (USD) and beginning a new trend.
Earlier this year, John McAfee had predicted that Golem (GNT) would reach a price of $5 in July. That did not happen then, but we now know the reasons behind such a bold assumption. The charts look favorable for a rally to $5 by end of year but the fundamentals of Golem (GNT) have to be solid enough for that to materialize. Back then we did not know much about Golem (GNT) but now that they have a working product, it makes sense to see that interest in Golem (GNT) is on the rise.
Golem (GNT) has made a lot of progress these past nine months. The same cannot be said of most other altcoins and ICO projects because the majority of them are either scams or useless tokens with no real use cases. Golem (GNT) on the other hand had a well defined use case from the very beginning but now it has a finished product that is ready to use. Golem (GNT) is focused on three things: computing power, rendering and machine learning. Individuals can run their computers to complete these tasks in exchange for compensation in the form of Golem Network Tokens (GNT).
Most of these tasks will be outsourced by companies that need cost effective computing power on a large scale. For instance, Pixar might want to hire some computing power for animation rendering. So, they buy some GNT, and then create a project and then individual across the globe can use their computers towards that particular task to earn those GNT. At the end, Pixar gets its rendering done and task performers get their compensation in GNT. Anyone with access to a computer can start earning with Golem (GNT) by performing various tasks. The concept is similar to that of mining Bitcoin (BTC) but more practical and accessible.
Apart from the strong fundamentals, Golem (GNT) also appears to be a very lucrative investment from a risk/reward standpoint. The weekly chart above for GNT/BTC shows that Golem (GNT) has bottomed out against Bitcoin (BTC) and is now on the verge of a break out. The next rally from current levels will most likely be the beginning of a new trend. Wave trend analysis for the above chart shows that the price is ready for a trend reversal. While it is also possible for Golem (GNT) to break out of this triangle to the downside, it does not seem likely considering the cryptocurrency has already been through an extensive correction and has seen growing interest over the past few months.