Fantom Surges 50% – Bull Trap Ahead?

Fantom (FTM) Price Surges by 50%: Is It Sustainable?

Over the past month, Fantom (FTM) has experienced a significant price increase, surging by 50%. However, recent data indicates a potential slowdown in this upward trend, raising questions about the sustainability of FTM’s price momentum.

According to CoinGecko, FTM is currently trading at $0.4846 with a daily trading volume of $286,462,423. Despite a slight decline of 0.12% in the last 24 hours, FTM has maintained a strong 25.11% price rise over the past week.

Crypto analysts and traders are closely watching FTM’s price action, with some suggesting it may be a potential bull trap, while others see further growth potential.

Is FTM’s Price Surge a Bull Trap?

Crypto analyst @CryptoJobs3 has shared a cautious outlook on FTM’s current price levels. According to the analyst, FTM is trading at a resistance level between $0.500 and $0.5050, with bearish divergence observed on the hourly Relative Strength Index (RSI).

The analyst predicts a possible price correction with support levels around $0.470 to $0.4650. However, the weekly timeframe offers a more optimistic outlook, with a potential mid-term price target range of $0.5800 to $0.600.

• Resistance level: $0.500 – $0.5050
• Support levels: $0.470 – $0.4650
• Mid-term target: $0.5800 – $0.600

Given the current market conditions, the analyst recommends avoiding long positions at current levels, suggesting that traders wait for a price dip before entering the market.

Bullish Chart Patterns for FTM

On the other hand, prominent analyst @Nebraskangooner has identified a potentially bullish chart pattern for FTM. He shares a positive outlook on the weekly timeframe, pointing to the same mid-term target range of $0.5800 to $0.600.

The analyst also advises caution at the current price levels but highlights the formation of a bullish pattern known as the “inverted head and shoulders.” If FTM breaks above the neckline of this formation, it could trigger a new wave of buying momentum.

• Potential bullish indicator: Inverted head and shoulders pattern
• Possible breakout: Above neckline could lead to buying surge

While both analysts express caution about entering the market at current levels, they agree on a mid-term bullish outlook for FTM, with a potential price range of $0.5800 to $0.600 if market conditions align.