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 an increase of 12.79%
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 drop 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 could 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