Fantom Looks Oversold While Buy Signals Appear
Fantom has retraced by more than 27% since May 5.
FTM has now reached a vital support level.
A spike in buying pressure could push the asset to $0.80 or even $1.
Share this article
Fantom is hovering around a vital demand zone that has historically served as a rebound zone. Similar price action could see the Layer 1 asset surge toward $0.80 or higher.
Fantom Prepares to Rebound
Fantom appears to have reached a crucial area of support that may help prices rebound if it continues to hold.
The Layer 1 blockchain’s FTM token has endured a steep correction over the past few days after suffering a rejection at the $0.87 resistance level. Fantom has seen its price drop by more than 27% since May 5, recently hitting a low of $0.63. Now, the downtrend appears to be reaching exhaustion, which could result in a bullish impulse.
Fantom has begun testing the lower trendline of a parallel channel that has developed on its 12-hour chart. The vital support level has prevented further losses since early January, leading to an upswing to the pattern’s upper boundary every time it has been tested. Similar price action could see FTM rebound to $0.80 or even $1.
The Tom DeMark (TD) Sequential indicator adds credence to the optimistic outlook as it is preparing to present a buy signal on the 12-hour chart. The bullish formation looks set to develop as a red nine candlestick, which is indicative of a one to four candlesticks rebound. Moreover, Fantom appears to be creating a bullish divergence against the RSI within the same timeframe.
Although the odds favor the bulls, uncertainty across the crypto and global financial markets could cause a downswing. Due to the rocky climate, many crypto assets have been bleeding over the past week, with Bitcoin hitting a 10-month low earlier this afternoon.
If Fantom sees a spike in selling pressure and breaks below $0.62, the short-term optimistic outlook could be invalidated. Under such unique circumstances, Fantom could extend its losses toward the $0.50 support level.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
For more key market trends, subscribe to our YouTube channel and get weekly updates from our lead bitcoin analyst Nathan Batchelor.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.