FTM Technical Analysis: Post-Retest Bull Run Teases New All-Time High Creation, Is the Rally Too Good to be True?
Fantom aims to develop the DeFi and other smart contracts-based decentralized services with the help of a new consensus mechanism. Fantom created this new consensus mechanism, Lachesis, from scratch to increase security and speed. The mechanism has a higher capacity, a faster rate of transaction finalization (~two seconds), and is more secure than the PoS mechanism.
Let us move ahead to read about Fantom technical analysis.
Past Performance of FTM
The FTM coin price shows a growth of more than 10% in the past 24 hours, resulting in a breakout of $3.15. Moreover, the price jump increases the chances of a new all-time high formation. Currently, the price retests the bullish breakout of the horizontal level at $3.15. Therefore, a post-retest bull run can drive the prices higher above $3.5.
FTM Technical Analysis
The FTM coin price retests the bullish breakout of the inverted head and shoulder pattern in the daily chart. The breakout was predicted in our previous technical analysis. The lower price rejection evident by the long tail formation indicates a boom in underlying bullishness.
Crucial EMAs (50, 100, and 200) maintain a bullish alignment in the daily chart, while the 20-day EMA provides constant dynamic support. Therefore, the EMAs help sustain the buying pressure and drive the FTM prices higher.
The RSI indicator at 65% shows rejection from the overbought boundary and retraces lower to the central line. Nonetheless, the 14-day SMA and the slope sustain in the nearly overbought zone signaling a stronger bullish side.
The MACD indicator shows the MACD and signal lines sustaining above the zero mark by reversing the recent bearish crossover. The lines regain the bullish alignment and rise higher with positive growth in histograms.
Therefore, the underlying growth in the bullish momentum is evident by the pattern breakout and technical indicators. Hence, the FTM coin can shortly resume the uptrend.
Upcoming Trend
The FTM coin price retests the bullish breakout of the inverted head and shoulder pattern in the daily chart. Therefore, traders can find a bullish entry at current prices with excellent risk to reward positions to capture the upcoming bullish trend.
The Fantom coin price action suggests the key resistance pivot levels at $4.15, once the sustains above $3.5. And, in case of a bearish reversal, the price can find demand at $3.15 and $2.75.
The sentiments chart gives a solid "BUY" signal for the FTM coin, at the time of writing.