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?
Source: FTM/USDT on TradingView
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
Source: feeling
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.
Source: Coinglass
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.