Buoyed by a broader market restoration, Fantom continued its ascent which kick-started on 27 October following a rebound from $2.8. Ought to FTM make headway in the direction of the neckline of its head and shoulders sample, additional upside lay in wait after a profitable breakout.
With spot volumes accumulating throughout exchanges, merchants should hold an in depth eye on the chart with the intention to lengthy FTM’s bullish sample. On the time of writing, FTM traded at $3.28, up by 17% over the past 24 hours.
Fantom Hourly Chart
Supply: FTM/USD, TradingView
Fantom shaped an inverse head and shoulders on the decrease timeframes, following its decline to $2.8 and a subsequent pickup again in the direction of $3.48. Now that the suitable shoulder accomplished formation, FTM wanted to make floor again in the direction of the neckline. Earlier than doing so, the MACD’s potential bearish crossover was anticipated to ask some promoting strain into the market.
From there, bulls can goal a comeback on the neckline by responding on the confluence of the 78.6% Fibonacci stage and the 20-SMA (crimson). As soon as FTM decisively closes above $3.48, bulls can prolong their attain in the direction of the 138.2% Fibonacci stage ($3.85). The 161.8% Fibonacci stage ($4.09) could be extra of a mid time period goal, achievable over the approaching days.
To negate this final result, bears would want to pressure an in depth under $2.3, following which the market could be uncovered to $3.07 and $2.8 help areas.
Reasoning
Now the bulls have offered the RSI from declining under 50, which was a optimistic signal. This indicated that consumers have been placing up a powerful combat to maintain FTM inside a bullish-bias.
The Directional Motion Index additionally confirmed with the RSI’s bullish stance. Nevertheless, the MACD was anticipated to generate some downwards strain because the fast-moving line (blue) eyed a break under the Sign line (orange).
Conclusion
FTM was anticipated to move in the direction of the 78.6% Fibonacci stage and 20-SMA (crimson) as a result of a weakening MACD. Nevertheless, bulls might reply strongly at this confluence and set off a comeback in the direction of $3.48. From there, an upwards breakout would set FTM on target in the direction of the 138.2% Fibonacci stage. In the meantime, merchants can lengthy FTM as soon as the worth places a leg above $3.48. Take-profit might be set at $3.85 and stop-losses at $3.22.
