Disclaimer: The information presented does not constitute financial, investment, trading or other types of advice and is the opinion of the author only
- FTM can continue its downward momentum.
- FTM has noticed a decrease in open interests in the futures market.
a ghost [FTM] It showed gains of more than 80% after the rise from $0.1940 to $0.3577. However, the rally appeared to be subdued after the FTM faced price rejection at $0.3462.
At press time, the FTM is trading at $0.3203 with potential for further downside if more bears join.
Read a ghost [FTM] predict the price 2023-24
Support $0.3128: Can it hold?
The 12-hour chart of FTM showed that the Relative Strength Index (RSI) has declined sharply but remains in the overbought territory. This indicates a sharp drop in buying pressure as holders sell off their holdings to lock in profits.
Similarly, On Balance Volume (OBV) showed a slight decline after a massive uptrend recently. It appears that the trading volume decreased slightly after the bears moved.
Given that the overbought condition makes the asset ready for a trend reversal, the current downtrend of the FTM may continue. This might push the bears to retest the $0.3128 support. However, a break below the support level might be possible if Bitcoin’s bullish trend also reverses in the next few days.
However, the downside could be contained at the 61.8% Fibonacci level at $0.2953. Therefore, $0.3128 and $0.2953 could serve as selling targets if the FTM trend rebounds in the next few days/weeks.
Alternatively, the bulls could push the FTM above $0.3462 if BTC is bullish, invalidating the bearish bias above. Such a move could allow the bulls to target $0.3577.
FTM weighted sentiment was positive, while open interest declined sharply
Weighted sentiment for FTM was positive at the time of writing, indicating that analysts remain optimistic about the asset. Additionally, the recent uptrend has seen gains for short-term holders as evidenced by the positive 30-day MVRV. But the long-term holders suffered losses.
Is your wallet green? paying off FTM Earnings Calculator
However, open interest in the FTM appears to have peaked after a steady rise since the beginning of the year. OI fell along with the price, a potential symptom of a confirmed trend reversal as more money flows out of the FTM futures market. This may indicate that FTM may see further price declines.
The weighted sentiment showed a bullish outlook, while the futures market tilted towards a bearish FTM. It’s a mixed signal. Therefore, BTC price action can provide investors with a more accurate prediction of FTM price movements.
As such, if BTC breaks below $20.15K, the FTM could break the $0.3462 support and advance south to $0.2953. However, a move for BTC beyond $21.23K could motivate the FTM bulls to clear the $0.3462 barrier and test the overhead resistance at $0.3577.