FTM Technical Analysis: Channel Breakout Rally Heads $0.30

The FTM price action gives a bullish breakout of the galling channel pattern in the daily chart, with a recent reversal of 12.5%. However, the breakout rally may shortly face opposition at the overhead supply zone at $0.30, close to the 50-day EMA. Will this recovery rally break above the crucial resistance zone of $0.30?

Key Points:

Source - TradingView

FTM Technical Analysis

The FTM price shows a downtrend in a falling channel pattern after the $0.30 fallout accounting for a drop of 20% within a fortnight. However, the recent reversal from the support trendline fruiting the bullish divergence in RSI results in the bullish breakout.

The recent 12.5% recovery over the past four days approaches the $0.30 supply zone close to the 50-day EMA. Moreover, the spike in trading volume supports the breakout rally, but the higher price rejection in the daily chart warns of a trend reversal at $0.30.

However, the sideline buyers can expect a breakout entry opportunity if the FTM prices exceed the $0.30 supply zone, with a potential to reach $0.35.

Conversely, reversing the $0.30 supply zone will drop the Fantom market price to retest the broken resistance trendline.

Technical Indicators

The RSI slope skyrocketed from the oversold region indicating the traders are interested in FTM's discounted price. A breakout from above the midline will reflect a switch to positive sentiment about the coin.

A narrow gap between the MACD and signal line suggests no strong momentum and accentuates a sideways rally.

Hence, the technical indicators reflect high demand pressure at the bottom level, but the market sentiment remains uncertain.

Resistance Levels - $0.30 and $0.35

Support Levels - $0.26 and $0.24