Fantom Price Prediction: FTM could drop 30% due to this sell signal

Fantom price has seen a considerable surge of 300% in the last week.
FTM could see a pullback or a correction as Tom DeMark Sequential indicator has flashed a sell signal.
A breakdown of immediate support at $0.55 could result in a 15% correction.
However, a four-hour candlestick close above $0.81 could invalidate the bearish thesis.

Fantom price has returned an excessive of 3,800% in just 56 days. Now, FTM shows signs of exhaustion and could see a steep correction soon.

Fantom price eyes a lower low

In the last week alone, Fantom price rose a whopping 300% from $0.16 to $0.66. However, the Tom DeMarket Sequential indicator has flashed a sell signal in the form of a green nine candlestick on the 4-hour chart. The setup forecasts a one to four candlestick correction.

Interestingly, the last two times FTM saw this sell signal, its price dropped roughly 30%. Assuming a similar turn of events, Fantom could be poised for a pullback.

In case of a reversal, Fantom price could see a retest of the support level at $0.55 or the 78.6% Fibonacci retracement level. If this crucial demand barrier is breached, FMT could see a correction of 20% to $0.46 or the 61.8% Fibonacci retracement level.

FTM/USDT 4-hour chart

Investors also need to be aware of the TD Sequential indicator’s looming sell signal on the 1-day chart. At the time of writing, the indicator has presented a green eight candlestick, which hints at an incoming reversal or a correction in Fantom price soon.

FTM/USDT 4-hour chart

FTM/USDT 1-day chart

On the other hand, FOMO-led rally leading to a spike in buying pressure could easily ignore and invalidate the sell signals. In such a case, Fantom price could rally 20% to hit a new all-time high at $0.81, which coincides with the 127.2% Fibonacci retracement level.

A 4-hour candlestick close above this level could propel the coin $1 or the 161.88% Fibonacci retracement level.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram