Fakeout Or Breakout? Hidden RSI Divergence Teases Bullish Breakout For FTM Price

Source : coingape.com

https://cdn.coingape.com/wp-content/uploads/2021/03/17191557/fantom-min.png

FTM price lost almost half its value in last week’s market carnage. However, the buyers still refuse to drop below the $2 mark, indicating a high point for reversal. Moreover, according to analysis tool DeFiLlama, Fantom has become the third-largest decentralized finance (DeFi) ecosystem in terms of total value locked(12.39B).

Key technical points: 

  • The daily-Stochastic indicator shows a bullish crossover among the K and D line
  • The intraday trading volume in the FTM coin is $2.18 Billion, indicating a 26% hike.

Source- Tradingview

As we mentioned in our previous coverage on Fantom technical analysis, the FTM price slashed by 46% from the All-Time High of $3.48 and plummeted to the $2 support. Coin buyers expressed high interest in this discounted price, resulting in a long bullish candle on the weekend.

On January 24th, the sellers tried to regain control over the coin by pushing it below the $2 mark; however, the increasing underlying bullish rejected the price with a long wick, indicating high demand.

The FTM/USD pair trading above the 100 and 200 EMA maintains a bullish trend. However, the recently flipped 50 EMA resistance puts strong selling pressure on the rising price.

The daily-Stochastic RSI provides a bullish crossover of the K and D line, supporting a bullish reversal.

Double bottom Breakout Hints Recovery Bell For FTM

TradingView Chart

Source-Tradingview

The recent price jump in FTM/USD has formed a double bottom pattern in the 4-hour time frame chart. The coin price has spiked 23% from the $2 support and now challenges the $2.4 neckline for a bullish breakout.

The 4-hour Relative Strength index(52) shows impressive recovery from the oversold region. Moreover, the RSI slope projects a bullish divergence, projecting a high possibility for a double bottom breakout.

  • Resistance levels- $2.4, $2.7
  • Support levels are $2 and $1.2

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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