Fantom Consolidates Before Uncertain Future

Blockonomics
Fantom Consolidates Before Uncertain Future
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key takeaways

Fantom is down more than 30% in the past two weeks. Some buy signals are starting to appear, indicating that FTM is oversold. Despite this, the Layer 1 coin has yet to break out of support or resistance.

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Fantom appears to have stabilized after suffering heavy losses over the past week. Despite the ambiguity the layer 1 coin exhibits, it offers two key price levels that investors can focus on to predict a potential bullish or bearish breakout.

Fantom continues to integrate

Fantom appears to have reached a key demand area that could determine where its price is headed next.

The price of Layer 1 token FTM has fallen by more than 30% over the past two weeks, from a high of $1.68 on April 2 to a low of $1.10 on April 11. Such a major correction appears to have Fantom in oversold territory as the Tom DeMark (TD) Sequential indicator showed a buy signal on the daily chart on April 13.

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Still, the lack of upward pressure over the past few days has not helped confirm the optimistic outlook.

The formation of the parallel channel on Fantom’s daily chart appears to be clearer, as it shows two key price levels to watch out for: the pattern’s mid-trend line at $1.04 and the upper limit at $1.33 can define where the FTM is heading next.

A sustained close above resistance could lead to a 60% break to $2.15, while a break above $1.04 support could lead to a correction to the lower edge of the channel to $0.75.

Source: TradingView

While bulls seem more likely after a buy signal from TD, it is better to wait for a decisive daily close outside the $1.04-$1.33 price range. Only a breach of these key support and resistance levels can resolve the ambiguity presented by Fantom.

Notably, most cryptocurrencies in the market, including Fantom, are still highly correlated with Bitcoin. What’s more, the flagship cryptocurrency is flashing some red flags after the whales entered into a frenzied sell-off. Caution is advised on current price levels as if BTC loses support at $39,400, it could send the rest of the market down with it.

Disclosure: At the time of writing, the author of this article owns BTC and ETH.

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