I’m slowing coming round to TA analogy of “show me the chart and I’ll tell you the news”… Right off the back of extreme FUD for Fantom, which has the herd calling to short FTM to zero; a view of the weekly charts evidences that a double tops was already playing out, with the recently news just creating the sell pressure required to confirm this bearish reversal pattern.
As a contrarian thinker, I won’t be laying a short trade yet; as I suspect the herd may be punished for an over-reaction in sell off; which might create a long scalp opportunity.
I will seek a daily close below the neckline of the double, and confluence with momentum indicators, to map out an entry in the comings days.
The technical target of this double top is circa $0.62, which whilst sounding extreme on face value, would represent an 83% drawdown in the FTM price from ATHs. A massive drop, but fair game for an altcoin bear market.
The initial target of circa $0.94 is based upon the filling of a December 2021 wick; and liquidity grab by MMs in that regard. That would be a 34% short opportunity from current prices and the trade I will aim for; with anything extra representing a risk-free position after profit taking.
For added confluence I’ve spotted an inverted cup and handle pattern on the FTM daily chart, which has a technical target exactly where the double top short target of $0.62 is.
Not Financial Advice — This information is published as my personal trading diary, for the sole purpose of informing my personal trading decisions.
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- Source: https://medium.com/@hfdtrading/crypto-trading-diary-fantom-ftm-to-fall-off-a-cliff-724562bf4461?source=rss——cryptocurrency-5
