- Fantom price projected to follow the aggregate market lower.
- The weekly chart warns of a deep retracement.
- Fantom is considerably overbought compared to its peers.
Fantom price appears to be bucking the trend the majority of the cryptocurrency market has experienced since the bearish China news came out. Fantom lost as much as -17.4% on the initial news release but soon rallied 12% higher to bring the current intraday close to -7.2%.
Fantom price moves lower despite short term buying pressure
Fantom price is nearing a make-or-break level for both sides of the market. Control remains with the sellers, even though Fantom price has rallied as much as +33% from the Tuesday lows. It remains below the Tenkan-Sen and Kijun-Sen ($1.25) – levels that buyers must close above to take over.
The primary target zone for sellers is a collection of Ichimoku, Fibonacci and volume profile levels within the $0.38 to $0.41 value area. Two Fibonacci expansions (250% and 300%), the 38.2% retracement, 2021 Volume-Point-Of-Control, and Senkou Span B sit inside $0.38 - $0.41. This combination of technical levels should act as a magnet for Fantom price.
FTM/USDT Daily Ichimoku Chart
One look at the oscillators should confirm that any move lower for Fantom price will likely be sustained. The Optex bands are neutral and the Composite Index is flattening out. The Relative Strength Index looks poised to drop below 50 and at an angle that suggests a test of 40 will fail to hold as support.
Buyers, however, could quickly invalidate the bearish outlook. The current pattern on the chart is a bull flag, indicating a continuation move of the prior trend – which was up. Fantom price would need a break above the Kijun-Sen and Tenkan-Sen at $1.25 to close above the second-to-last significant swing high at $1.50. If that scenario plays out, then Fantom will most definitely continue its prior upward trajectory.
Like this article? Help us with some feedback by answering this survey: