FTM Technical Analysis: Reversal Lights After 40% Fall Last Week

During the sell-off last week, FTM prices crumbled 40% to showcase lower price rejection at $0.20, hinting at a morning star pattern formation.

Key technical points:

The market price has increased 9.68% over the past 24 hours.The price action shows a high likelihood of a bullish reversal from $0.20.The 24-hour trading volume of Fantom is $451 Million, indicating a hike of 15%.

Past Performance of FTM

The diagonally bullish rally in FTM after the reversal of $0.30 failed to sustain the uptrend due to the bear market picking up pace last week. The sudden increase in selling pressure drove the price under the $0.30 mark leading to the head and shoulder fallout rally as forecasted in our previous article. The downtrend takes support at the next support level of $0.20 and prepares a reversal to retest the breakdown of $0.30.

TradingView Chart

Source- Tradingview

FTM Technical Analysis 

FTM prices showcase a bullish reversal from the $0.20 with lower price rejection in daily candle and a boom in trading volume. This increases the chances of a morning star pattern formation as the buyers step back in.  The MACD indicator shows a merger of fast and slow lines in the daily chart as the bullish histograms crush the zero line. However, the lack of growth in the bearish spread and the negative histograms brings a reversal opportunity for buyers to regain trend control.

The RSI indicator shows an underlying bearishness, but the last two dips at $0.30 and $0.20 display a bullish divergence in the daily chart. However, the RSI dips into the oversold zone and reverses but struggles to rise above the 30% boundary. Hence, the technical indicator displays a bullish reversal opportunity that goes in hand with the price action analysis. In conclusion, the FTM technical analysis forecasts a bullish reversal to retest the $0.30 mark.

Upcoming Trend

Suppose the buying pressure grows over the day, the bullish reversal will reach the $0.30 mark and increase the likelihood of a breakout entry. 

Resistance Levels: $0.30 and $0.50

Support Levels: $0.20 and $0.10

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