Fantom (FTM) has been moving upwards since Feb 24 and has broken out from a diagonal resistance level. However, it has yet to reclaim a crucial horizontal resistance level.
FTM has been falling since Jan 17, when it reached a high of $3.37. The downward movement led to a low of $1.30 on Feb 24. Measuring from the high, this amounted to a drop of 61%.
The ensuring bounce created a long lower wick and served to validate the $1.35 area as support. The area has been in place since Oct 2021, so it is a crucial level that is expected to provide support.
FTM has been increasing since and is approaching the $1.95 resistance area.
Cryptocurrency trader @Altcoinsherpa tweeted a chart of FTM, stating that the $1.20 – $1.45 area is expected to provide support.
Since the tweet, the price has reached this level and bounced.
FTM breaks out
Despite the ongoing bounce, technical indicators are not yet bullish.
While both the MACD and RSI are increasing, the former is negative, and the latter is still below 50. Movement above these levels is required in order for the trend to be confirmed as bullish.
Therefore, FTM has to move above the $1.95 resistance area in order for these indicators to cross into bullish territory.
However, the six-hour chart shows that FTM has already broken out from a descending resistance line in place since the Jan high. This supports the possibility that the price will reclaim the $1.95 area and continue increasing.
If it does, the next closest resistance area would be at $2.35. This is the 0.5 Fib retracement resistance level and a horizontal resistance area.
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here
Disclaimer
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Ecosystem
Research
News Network
About