Source : coinquora.com
- Fantom (FTM) has broken through and flipped a resistance level.
- FTM traders may look to take profit which could push the price of FTM down.
- The bearish thesis will be invalidated if FTM can close the current 4-hour candle above the 9 EMA line.
Fantom (FTM), has broken through and flipped a resistance level as its price may look to target between $0.29 and $0.31.
In the last 24 hours, FTM has risen 0.89% in price according to CoinMarketCap. This takes its price up to around $0.2584 at the time of writing.
Looking at the 4-hour chart for FTM/USDT, the price of FTM is in an ascending price channel as its price has posted higher lows over the last 2-3 days. The channel has seen the price of FTM rise from $0.2379 to its current level at the time of writing, which is a 2.05% increase so far.
Given the upwards move, the price of FTM may break out below the price channel with potential take-profit orders entering the market. The price has dipped to the support level between the 2 Exponential Moving Average (EMA) lines and has also dropped below the 9 EMA line.
In addition to the drop in price over the last 4-8 hours, the Relative Strength Index (RSI) has also nose-dived to just below the RSI SMA line, which is a notable bearish flag.
If the current support level that is being tested by FTM’s price is unable to hold, then FTM’s price may drop as low as $0.2524 – a price level below the 20 EMA line as well.
However, if FTM can recover in price on the 4-hour chart and close above the 9 EMA line then the bearish thesis will be invalidated. Investors and traders still need to be cautious as a large amount of sell volume has entered the market in the last couple of hours as traders and investors look to take profit.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CQ. No information in this article should be interpreted as investment advice. CQ encourages all users to do their own research before investing in cryptocurrencies.