- Fantom price action takes a breather after rejection on the monthly pivot.
- FTM price takes a step back as bulls start booking profit for now.
- Once the price pops back above $2.40, expect a rally to $2.96, holding 25% gains.
Fantom (FTM) price takes a step back as bulls are for the moment unable to break above $2.40, which proves to be a level too big to breach with the monthly pivot and the 61.8% Fibonacci level perfectly falling in line with each other. Although this has sparked some profit-taking, the uptrend is still very much intact, and the support of the 50% Fibonacci level at $2.00 has not yet been tested. Expect either a bounce off $2.00 or a simple U-turn once positive sentiment kicks in and breaks through the monthly pivot, attracting more buyers and in the process taking out $2.96.
Fantom takes a breather with $3.00 set insight
Fantom price was on an excellent path to recovery after some short-term price action below $2.00. Bulls seized the moment to buy into the price action, scooped up the dip and set their minds on $3.00. But for the moment, price is hitting a curb with a firm rejection at $2.40, which is the monthly pivot level and the 61.8% Fibonacci level, making it an adamant level to break.
FTM price will still see some profit-taking and could undergo a short downfall to $2.00, at the 50% Fibonacci level. A bounce off that level would indeed generate enough interest from bulls who missed the first entry a few days ago and is likely to see an even stronger uptick that will breach the dam at $2.40. With that, the uptrend will be confirmed and see more inflows, pushing price towards $2.96, and a possible test of $3.00, and the monthly R1 and the 78.6% Fibonacci resistances located there.
FTM/USD daily chart
The rejection could be the start of a downtrend, as bears used the monthly pivot as an entry point and have no intention of letting the FTM price break above. A further push towards $2.00 would create a false bounce with bulls getting trapped and bears going in for the squeeze with a break below $2.00, washing out bulls and going for a test on the green ascending trend line and the 200-day Simple Moving Average (SMA), that are both moving very close to one another. That could be the start of a downtrend but would need a severe deterioration of global market sentiment to create the headwinds bears need.
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.