Fantom Looks Oversold While Buy Signals Appear

Hashflare
Fantom Looks Oversold While Buy Signals Appear
Blockonomics


key takeaways

Fantom has retraced more than 27% since May 5. FTM has now reached an important support level. A surge in buying pressure could push the asset to $0.80 or even $1.

share this article

Fantom is hovering near an important demand area that has historically been a rebound area. Similar price action could see the tier 1 asset surge to $0.80 or higher.

Fantom ready to bounce back

Fantom appears to have reached a key support area that could help the price rally if it continues to hold.

The Layer 1 blockchain’s FTM token has undergone a sharp correction over the past few days after it was rejected at the $0.87 resistance level. The price of Fantom is down more than 27% since May 5, recently hitting a low of $0.63. Now, the downtrend appears to be exhausted, which could lead to a bullish impulse.

Ledger

Fantom has started to test the lower trendline of the parallel channel formed on its 12-hour chart. Important support levels have prevented further declines since early January, causing the pattern’s ceiling to rise each time it is tested. Similar price action could see FTM rally to $0.80 or even $1.

The Tom DeMark (TD) serial indicator adds credibility to the bullish outlook as it prepares to show a buy signal on the 12-hour chart. The bullish pattern looks set to develop into a red nine candlestick, which indicates a one to four candlestick bounce. Also, Fantom appears to have a bullish divergence against the RSI on the same time frame.

Source: TradingView

While the odds favor the bulls, uncertainty in cryptocurrencies and global financial markets could lead to a decline. Bitcoin hit a 10-month low earlier this afternoon as many crypto assets have been losing ground over the past week due to an unstable climate.

The short-term bullish outlook could be invalidated if Fantom sees selling pressure spike and dip below $0.62. In this particular case, Fantom could extend its losses to the $0.50 support.

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

For more key market trends, subscribe to our YouTube channel and get weekly updates from our Chief Bitcoin Analyst, Nathan Batchelor.

share this article

The information on or accessed through this website has been obtained from independent sources that we believe to be accurate and reliable, but Decentral Media, Inc. makes no representations about the timeliness, completeness or accuracy of any information on or accessed through this website. Representations or warranties. Decentral Media, Inc. is not an investment advisor. We do not provide personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may be out of date, or may be incomplete or inaccurate. We may, but are not obligated to update any outdated, incomplete or inaccurate information.

You should not make investment decisions regarding ICOs, IEOs or other investments based on the information on this website, nor should you interpret or otherwise rely on any information on this website as investment advice. If you are seeking investment advice regarding an ICO, IEO or other investment, we strongly recommend that you consult a licensed investment advisor or other qualified financial professional. We do not accept compensation of any kind for analyzing or reporting on any ICO, IEO, cryptocurrencies, currencies, tokenized sales, securities or commodities.

View full terms and conditions.



Source link

Blockcard

Be the first to comment

Leave a Reply

Your email address will not be published.


*