Fantom Faces Danger After Losing Critical Support

May 1, 2022

Fantom seems prefer it’s buying and selling on shaky grounds after dropping a significant help space.

Key Takeaways

  • Fantom has retraced by greater than 46% since Apr. 2.
  • It just lately misplaced the $0.96 degree as help, which is a bearish signal.
  • One other spike in promoting stress might ship FTM to $0.63.

Fantom seems poised to retrace after slicing via an important space of demand. Additional promoting stress might see the Layer 1 token drop by greater than 30%.

Fantom Dips Beneath Important Help

Fantom has breached a essential help degree that would result in a sell-off.

The Layer 1 blockchain’s token continues to commerce in a steep downtrend that started on Apr. 2. The asset has since retraced by greater than 46%, going from a excessive of $1.68 to hitting a low of $0.90.

The latest downswing has pushed costs under a major demand zone, which can encourage merchants to exit their lengthy positions.

Fantom seems to have damaged via the center trendline of a parallel channel that on its three-day chart. Since early January, FTM has dipped towards the sample’s decrease boundary each time such market conduct has occurred.

Related worth motion might see the token dive to $0.75 or $0.63 in quest of help.

FTM/USD Chart
Supply: TradingView

Though the chances seem to favor the bears, the Tom DeMark (TD) Sequential indicator offers merchants a purpose to stay optimistic that it might see some upside.

It’s at present presenting a purchase sign within the type of a pink 9 candlestick on Fantom’s three-day chart. The bullish formation anticipates a one to 4 candlesticks upswing within the close to future.

To substantiate the bullish thesis, FTM must commerce above $1 and print a three-day candlestick shut above this degree.

Underneath such distinctive circumstances, Fantom might rebound towards the parallel channel’s higher boundary at $1.20.

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