Fantom (FTM) Eyes $0.65 But Only If It Meets One Condition

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Fantom Foundation’s Sonic Testnet Goes Live: How Did FTM React?
  • FTM faces a key resistance at $0.46 as the token tries to add another 45% increase.
  • If the buying pressure continues to wane, FTM may drop below $0.40.  
  • Moving in the $0.65 direction is not out of the question as the MACD indicated increasing upward momentum.

According to analyst Ali Martinez, Fantom (FTM) has hit another resistance around $0.46. Notably, breaking the $0.40 psychological resistance has been one of FTM’s notable landmarks recently. This breakout was what gave rise to a 22.62% increase in the last 30 days.

The $0.46 Level Is Critical

For Martinez, FTM has the potential to become bullish again and jump to $0.65. He, however, mentioned that the token needs to break through $0.46. The $0.46 level became a crucial zone because it was at this point that 1,430 addresses accumulated 657.60 million tokens.

Therefore, buyers need to ramp up accumulation for FTM to break the said resistance. Should accumulation increase and FTM make a 45% increase to $0.65, it would join the likes of Cardano (ADA) and Avalanche (AVAX) as one of the best-performing Layer-one (L1) cryptocurrencies.

Before hitting a resistance at $0.46, FTM bulls had neutralized bears’ presence on December 13. At this time, the price was around $0.36. While there was some drawdown in between, the token was able to defy the desires of sellers by increasing exponentially. 

If FTM initially fails to break $0.46, there is a chance that the token may fall from the $0.40 region. However, a strong support was at $0.39 which might prevent a further plunge of the price action.

Caught Between a Decline and a Jump

The potential decline was also evident in the Relative Strength Index (RSI). Previously, the RSI reading has risen to 67.22 on December 15. But as of this writing, the indicator was down to 58.14. 

This downward trend is a sign of waning buying momentum. Should the buying momentum fail to revive, then the notion that FTM would drop below $0.40 might become a reality. However, traders need to watch out for any shift in sentiment.

As it stands, any move by bulls to outpace the 657.60 million accumulation might negate the $0.46 resistance. If this happens, FMT may move in the $0.65 direction.

FTM/USD 4-Hour Chart (Source: TradingView)

From the Moving Average Convergence Divergence (MACD), the fall of the Fantom native token might only last a while. This is because the MACD reading was positive. Furthermore, the 12-day EMA (blue) had diverged further above the 26-day EMA (orange).

This position indicates increasing upward momentum. Thus, taking a short position might not be the best bet in this instance. A few months ago, the Fantom ecosystem came under intense criticism for its inability to prevent some exploits on the chain.

Due to this, market participants were bearish on FTM. However, FTM is now back on the radar of traders mainly because of the Sonic testnet which allows builders to launch dApps on the network.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.