FTM investors may have new buying opportunities if the price drop stabilizes at…

  • FTM price decline could lead to a retest of the previous support area at $0.2395
  • The lower timeframes posted a bearish MACD cross
  • The FTM has seen a decline in positively weighted sentiment and funding rates

Fantom current price correction (FTM) can provide a new buying opportunity for a long position. The FTM price action since November 28 formed a bullish flag pattern.

Therefore, the FTM could see a breakout to the upside if the current price action follows a flag pattern and settles at the $0.2395 support. This will be a long position that you can only maximize if you buy at a lower price after the current price has corrected.

At press time, the FTM is trading at $0.2462 and the bears could pull the price down to test $0.2395 again.

Will the FTM price cut be the final touch on this chart pattern?

Source: FTM/USDT on TradingView

FTM has rebounded since November 28, recovering more than 39% of its value lost after the FTX crash. At the time of publication, the FTM bears were having a field day, as the lower time frame charts posted a bearish MACD cross. This means that the bears are controlling the markets in the lower timeframes and may soon enter the higher timeframes.

The bears can prevail until the FTM price reaches the 50% Fibonacci retracement level ($0.2462). The aforementioned support was reached recently, so the price drop might be a retest of this level.

In addition, the recent price action of the FTM follows a bullish flag pattern. A price drop to the above level would help complete the pattern in anticipation of a possible bullish breakout.

The Relative Strength Index (RSI) indicator has pulled back from the oversold entry line. This is a sign that the buying pressure is easing when the sellers enter the scene. Thus, sellers can push the FTM to the $0.2462 level.

In addition, OBV has reached similar highs after the recent bullish rally. This indicates that the trading volume does not exceed the last level to increase the buying pressure. Hence, the emerging selling pressures could push the FTM to $0.2462 or lower.

However, a daily close above the current resistance at 61.8% Fibonacci level (0.2573 USD) would invalidate the above forecast. Such an early bullish breakout would provide a long entry position with Fibonacci 78.6% ($0.2825) as a new target.

The FTM has seen a decrease in funding rate and weighted sentiment

Source: feeling

However, the altcoin saw a slight decline in the weighted sentiment and slowly drifted towards the neutral position. Accordingly, we have observed FTM currency exchange financing rates falling into negative territory.

This indicates that the FTM futures market has a bearish outlook, a similar sentiment that the spot market has been slowly adopting, at press time.

In addition, FTM has seen a sharp increase in development activity, which has leveled off at the time of publication. The price of the FTM has increased with the recent surge in development activity. Therefore, flattening development activity may further undermine the upside.

Thus, the above indicators and metrics support the bearish bias that FTM price will drop to $0.2462.

However, if BTC turns bullish, the FTM will experience an immediate flag pattern breakout, which will invalidate the price bias for a pullback.

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