Fantom Consolidates Before Uncertain Future

Key Takeaways

  • Fantom has dropped by greater than 30% over the previous two weeks. 
  • Purchase indicators are beginning to seem, suggesting FTM is oversold. 
  • Nonetheless, the Layer 1 token has but to interrupt by way of help or resistance. 

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Fantom seems to have stabilized after incurring important losses over the previous week. Though the Layer 1 token reveals ambiguity, it presents two essential value ranges to which buyers can concentrate as a way to anticipate a possible bullish or bearish breakout.

Fantom Continues to Consolidate

Fantom seems to have reached a essential demand zone that would decide the place its value will go subsequent.

Layer 1 token FTM has seen its value decline by greater than 30% over the previous two weeks, going from a excessive of $1.68 on Apr. 2 to hitting a low of $1.10 on Apr. 11. Such a big correction seems to have put Fantom in oversold territory because the Tom DeMark (TD) Sequential indicator introduced a purchase sign on Apr. 13 on the each day chart.

Nonetheless, the dearth of upward strain seen prior to now few days has not helped to validate the optimistic outlook.

The formation of a parallel channel on Fantom’s each day chart seems to carry extra readability as a result of it reveals two essential value ranges to concentrate to: the sample’s center trendline at $1.04 and the higher boundary at $1.33 may outline the place FTM goes subsequent.

A sustained shut above resistance would possibly lead to a 60% breakout to $2.15, whereas breaching the $1.04 help degree can result in a correction to the channel’s decrease edge at $0.75.

Supply: TradingView

Though the chances seem to favor the bulls following the TD’s purchase sign, it might be preferable to attend for a decisive each day shut outdoors of the $1.04-$1.33 value vary. Solely a breach of those essential help and resistance ranges will resolve the anomaly that Fantom presents.

It’s price noting that the majority cryptocurrencies available in the market, together with Fantom, stay extremely correlated to Bitcoin. Extra importantly, the flagship cryptocurrency is flashing a number of pink flags after whales enter a promoting spree. Warning is suggested across the present value ranges as a result of if BTC loses the $39,400 help degree, it may carry the remainder of the market down with it.

Disclosure: On the time of writing, the writer of this piece owned BTC and ETH.

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