Fantom (FTM) barely failed to reach a new all-time high and dropped afterwards. It is currently searching for support.
FTM has been advancing at an accelerating rate since December 30, when it validated the previous falling resistance line as support. The upward move led to a high of $3.37 on January 17. Although just below the all-time high of $3.48, the January 16 close was the highest on record.
Currently, FTM is trying to hold on above the $3.15 horizontal area. The area previously acted as resistance and is expected to act as support. Therefore, the current daily close is important for the future trend. A close above this level would validate the area as support and likely lead to a new all-time high price.
Trader in cryptocurrency @George1Trader tweeted an FTM chart, indicating that the token could rise to a new high above $4. Since the tweet, the token has gone up, but just hasn’t hit a new all-time high.
Future FTM movement
However, the six-hour chart indicates that a short-term downward movement could transpire prior to the continuation of the ongoing increase.
The main reason for this is the bearish divergence that has developed in both the RSI and the MACD (green lines). This often precedes downward movements.
If a decrease occurs, the main support area would be between $2 – $2.26, the 0.5-0.618 Fib retracement support level.
This would be a great place for FTM to create a higher low and then resume its upward move.
There is considerable overlap in the downward movement between Oct and Dec 21 (highlighted). Therefore, it is likely that the decrease was a correction, while the ongoing increase is the beginning of a new long-term upward movement.
Accordingly, if FTM eventually hits a new all-time high, the next closest resistance zone would be at $4.85. The zone is found using the 1.61 outer Fib retracement level on the aforementioned decline.
