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Fantom will plunge by 70% liquidating FTM bulls

  • Fantom price has made a parabolic rise, now faces a proportional corrective move.  
  • Strong confluence zone of Fibonacci and Market Profile price levels point to likely support.
  • Oscillators point to continued downside pressure.

Fantom has racked up an astonishing +1,144% gain from the July 21st lows to the new all-time high made on September 9th. Unfortunately, a great majority of that gain is likely to be wiped out due to any parabolic rise's standard 50% correctional nature. As a result, late-term bulls who bought between $1.24 and $1.50 are threatened with liquidation and capitulation.

Fantom price approaches selloff zone and liquidation area for any leveraged bulls

Fantom price collected many 'buy the top' bulls between $1.24 and $1.25. The #1 on the left side of the image below shows the high volume node developed in that price range. Observe the massive gap in the Market Profile between $1.24 and $0.85 (#2). If bears can push Fantom price below the daily Kijun-Sen at $1.18, there will likely be a violent and fast move towards the $0.85 level. In the process of that move, many of the participants who bought the highs will likely become liquidated if they are leveraged or will panic sell and abandon the positions immediately.

FTM/USDT Daily Ichimoku Chart

The likely primary support zone is roughly -70% below the current weekly open to $0.38. Interestingly enough, the Fibonacci retracement and Fibonacci expansions that occur in the $0.38 value area have eerily similar number values. 38.2% for the Fibonacci retracement ($0.37) and 138.2% ($0.41). The 2021 VPOC (Volume Point-Of-Control) is also in this value area.

Bears shouldn't believe a selloff is a foregone conclusion. If Fantom were to consolidate further in the $2.20 range, it would begin to make an even strong high volume node in the Market Profile, thereby creating a strong zone of support that will likely act as a launching pad for further, higher highs. Any close above $1.70 would invalidate any near-term bearish sentiment.

Author

Jonathan Morgan

Jonathan Morgan

Independent Analyst

Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.

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