FTM Technical Analysis: Bullish Pattern Teases a Rally to Create New All-Time High: Is It Too Risky To Join The Rally?
Fantom is a directed acyclic network (DAG) smart contract software platform that provides decentralized finance (DeFi) services for developers through its own custom consensus algorithm.
Along with its own currency FTM, Fantom aims to address the issues associated with smart-contract platforms, including the speed of transactions. Developers claim they have reduced it to less than two seconds.
Let us move ahead to read about Fantom technical analysis.
Past Performance of FTM
FTM coin price shows a rise of more than two-fold within a month, with the demand found near $1.25. Moreover, the price has grown 40% in the past four days after the recent dip to the 50-day EMA. Moreover, the price breaks above the $3 psychological mark, indicating growth in overall bullish sentiment for the coin.
FTM Technical Analysis
The FTM coin price jump results in the breakout of an inverted head and shoulder pattern in the daily chart. Therefore, a breakout of $3.16 can drive the rally higher to create new all-time high levels.
The crucial EMAs (50, 100, and 200) maintain a bullish alignment with the 50-day EMA providing dynamic support to the short-correction phases. Moreover, the lower price rejection in the recent daily candles insinuates a bull run above $3.16.
The RSI indicator at 64% flattens after the crossover, with the 14-day SMA slightly below the overbought zone. Moreover, the SMA resembles a similar action, but the lines remain in the nearly overbought zone.
The MACD indicator shows the MACD and signal lines reverses after the bearish crossover and gives a bullish crossover in the daily chart.
Therefore, the long-tail formations reflect solid lower price rejection in the FTM coin prices and increase the chances of a rally above $3.16.
Upcoming Trend
The breakout of the inverted head and shoulder will increase the overall bullish activity in the FTM coin. Therefore, the breakout of $3.16 seems imminent and will drive the prices higher to $3.5.
The price action suggests resistance levels at $3.5 and $3.75 that can oppose the uptrend if the prices break the barrier at $3.16. The high demand levels are at $2.6 and $2.2, which can support the falling prices if it fails to rise above $3.16.
In conclusion, the current rally seems to be solid and can overcome the high selling pressure areas. Therefore, traders can hold or even increase their position size.