Fantom May Face Correction Before New All-Time Highs

Key Takeaways

• Fantom has risen by practically 180% since early December 2021.
• Now, FTM seems to have reached overbought territory.
• If promote orders pile up, the DeFi token might retrace to $2.42.

Fantom continues to outperform most cryptocurrencies available in the market after recovering from the latest market downturn. Nonetheless, FTM seems sure for a spike in profit-taking that would ignite a substantial retracement.

Fantom Would possibly Briefly Pull Again

Fantom could possibly be sure for a quick correction earlier than marching in the direction of larger highs.

FTM is without doubt one of the few cash that has managed to recuperate from the market-wide correction that started in late October 2021. Whereas and stay 30% under their earlier all-time highs, Fantom is approaching value discovery mode. The Twenty sixth-largest cryptocurrency by market cap bottomed out in early December at $1.14 and has risen by practically 180% since then.

Regardless of the numerous positive factors incurred over the previous month, Fantom seems to be buying and selling in overbought territory. The Tom DeMark (TD) Sequential Indicator introduced a promote sign on FTM’s 3-day chart. The bearish formation developed as a inexperienced candlestick, which is indicative of a one-to-four 3-day candlestick correction earlier than the uptrend resume.

A spike in profit-taking across the present value ranges might assist validate the pessimistic outlook. Underneath such circumstances, Fantom might take a nosedive in the direction of the 50% or 38.2% Fibonacci retracement ranges. These key help areas sit at $2.42 and $2.12, respectively.

It’s value noting that FTM seems to be having fun with a wholesome uptrend that has seen a number of corrections on the best way up. Because of this, it’s cheap to imagine that additional shopping for strain across the present value ranges can generate sufficient momentum to invalidate the bearish thesis.

If Fantom have been to interrupt by way of its earlier all-time excessive at $3.69, it could possible have the energy to proceed marching ahead in the direction of $5.

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