In today’s piece we will be taking a look at FTM – the network and governance token for the Fantom blockchain. Currently FTM is trading near $.25 with a market cap of $631.8 million, and is ranked #73 on CoinGecko.
It’s been a difficult week for crypto, with BTC falling through support at $19.6k and nearing range lows set in June. This drop has rippled across the entirety of the crypto markets- sending Altcoins back to support zones, FTM included. Will FTM revert back to the low of $.20 set in June, or will a bounce here form a higher low?
Let’s take a look at the charts and find out.
Fantom Price Analysis
After forming a local top at $.41, FTM’s 4H moving averages formed a death cross and have now retraced to support zones. FTM is currently sitting just above a local support zone at $.24 which was previously an accumulation zone in July. Below this are wick bottoms at $.22 and $.20, which is our current bear market bottom. In order to regain any sort of momentum, FTM will have to break through the 4H 50SMA, which is resistance at $.27. In this current downtrend, FTM has rejected off the moving average on multiple occasions.
The RSI and Stochastic are both heavily oversold, signaling that a short-term bounce or consolidation is likely. This also signals that it is likely our support zones hold.
Moving averages on the daily actually have the 50SMA above the 100 – thanks to the local peak at $.40 in August. With FTM now trading below all moving averages, this has the potential to be a fakeout. FTM will need to rise back above the 100SMA and cross $.30 in the coming weeks in order to validate the bullish divergence. This will act as a major resistance.
RSI and Stochastic are both touching on oversold zones, signaling that a bounce in the medium term is imminent.
Lastly we look at the weekly chart to gather data from a long term perspective. Here we can see that FTM’s RSI has actually been rising despite the relatively sideways action, and Stochastic is in a downtrend. This means that in the long term, FTM is likely to retrace back to its bear market bottom as the Stochastic trends toward oversold. From there, a bounce should form a double bottom pattern.
Conclusion
FTM is sitting above a stacked support zone from $.20 – $.24. As indicators across all time frames cross the oversold threshold, bears should lose momentum and supports should hold. On the 4H and daily, we could see a bounce up to $.27, but FTM can continue to grind in the consolidation zone and test supports until the weekly momentum shifts.
Support Zones:
- $.24
- $.22
- $.20
Resistance Zones
- $.27
- $.30
- $.41
Not investment advice. Do your own research.
