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The Fantom (FTM) recovery rally recently knocked out another resistance of $0.36. With the recent uncertainty in the crypto market, altcoin struggled for nearly four days to sustain above the breached resistance. However, the lower price rejection candle at the $0.365 level validates it as viable support and pushes the price higher with a bullish engulfing candle.
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Key points
- The FTM price rose 30% within a fortnight
- A daily-RSI slope nearing the overbought region suggests the buyers have overextended the price rally in a short period.
- The intraday trading volume in the FTM Network coin is $422 Million, indicating a 16% gain.
Source- Tradingview
A rounding bottom pattern with its bottom support at $0.22 initiates a recovery rally that has surged 83% within a month. Moreover, the bull run uses an ascending trendline as dynamic support to maintain the current recovery.
However, with a sudden surge in buying pressure in the crypto market, the FTM price has jumped 10.77% higher and is currently trading at $0.41. Thus, under the influence of a bullish pattern and supported by a rising trendline, the FTM price should rise 10% higher and hit the pattern’s neckline resistance of $0.45.
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Furthermore, a bullish breakout from the neckline resistance would propel the FTM price to another 16% higher, reaching the $0.52 supply zone.
However, the $0.45 barrier may revert the altcoin to a minor pullback before the price could trigger this pattern. Anyhow, the coin holders can keep a bullish sentiment until the support trendline is intact.
On a contrary note, losing this support trendline would trigger a significant correction in the FTM price.
Technical indicator
EMAs: The breached 20-and-50-day EMA are flipped into viable support, aiding buyers to carry forward this bull run. Moreover, a bullish crossover among these lines gives a buy signal.
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Relative Strength Index: the daily-RSI slope rising higher indicates the buyers are quite confident in the ongoing recovery. However, this line nearing the overbought region bolsters the correction theory.
- Resistance level- $0.45 and $0.52
- Support levels- $0.35 and $0.31
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
