FTM Technical Analysis: Fantom Prices Prepares A Bearish Exit

Key technical points:

Past Performance of FTM

The FTM prices continue to fall under the influence of a bearish resistance trendline accounting for a downfall of 50%. The resistance trendline knocks out the recent bullish attempt to regain the trend control, but the trendline and the supply zone at $0.30 dump the market price lower. Hence, the price action inchoates a descending triangle pattern with a consolidation range between $0.20 and $0.30.

Source- Tradingview

FTM Technical Analysis 

The sudden surges in the volume indicator coincide with the failed bullish attempts to regain trend control. This lowers the possibility of FTM prices surpassing the resistance trendline.

The frequent price drops from the 50-day SMA moving along with the resistance trendline remains a key obstacle in the bullish growth. Furthermore, the crucial SMAs(50, 100, and 200) maintain a bearish alignment displaying a long-term downtrend.

The MACD and signal lines generate a bearish crossover setting a bearish trend in motion. Hence, with the start of a new negative trend in the MACD histograms, we can see an increase in selling pressure.

The RSI indicator cracks under the 14-day average line as it drops drastically in the nearly oversold zone, indicating a rise in the underlying bearishness. In a nutshell, the FTM technical analysis shows a continuation of ongoing correction as sellers breached the $50 support.

Upcoming Trend

If sellers managed a daily-candle closing below the $0.20 support level, the triangle breakout rally would drop the FTM prices to $0.10.

Resistance Levels: $0.30 and $0.40

Support Levels: $0.20 and $0.10