The parabolic bounce in Fantom (FTM) price pushed its price back towards the ATH resistance near $3.2. The coin needs to face a small indentation to form the handle portion of the cup pattern and its handle. Completing this bullish pattern, the coin price could rise to newer levels.
Main technical points:
- The daily RSI chart shows a bearish divergence.
- FTM coin’s intraday trading volume is $2.8 billion, showing a 12.79% increase
The source- Tradingview
The last time we covered an article about Fantom coin, the pair showed an impressive recovery as it charged directly to the all-time high resistance around $3.12. However, the supply pressure on the crypto market caused another drop in price.
This small decline took support from the $2.20 mark and immediately recovered back to the overhead resistance. This whole structure shows a cup and handle pattern in the daily timeframe chart, providing excellent long-term trading opportunities.
If the price tries to break out and sustain above this resistance, the Fibonacci extension shows the next supply zone for FTM price at $3.75 and $4.47-$4.5.
The daily Relative Strength Index (62) shows bullish sentiment for the coin. However, the chart also shows a bearish divergence, suggesting some weakness on the buying side.
The FTM chart shows a double bottom on the 4-hour time frame
The source- Tradingview
The FTM coin is still struggling to overcome the $3.2 resistance. Therefore, crypto traders looking for a new long position in the coin should wait until they break out of this resistance. However, in the event of a rejection, the $2.64 and $2.2 support levels can still stage a rally.
The MACD indicator shows the signal and the MACD line is moving above the neutral zone. However, the recent price reversal has caused a bearish crossover between these lines.
- Resistance levels- $3.75 and $4.5
- Support level- $2.64 and $2.2